Use the Following Information to Answer the Questions) Below -What Is the Total Profit Generated from the Manufacture of Manufacturing

question 52

Multiple Choice

Use the following information to answer the questions) below.
Cerebro Manufacturing produces four types of structural support fittings-plugs, rails, rivets, and clips-which are machined on two CNC machining centers. The machining centers have a capacity of 250,000 minutes per year. The gross margin per unit and machining requirements are shown in the spreadsheet below. $\begin{array}{|l|l|l|l|l|l|l|} \hline&{\text { A }} & \text { B } &C&D&E&F\\\hline 1 & \text { Cerebro } & \\ & \text { Manufacturing Model } & \\\hline 2 & & \\\hline3 & \text { Product } & \text { Plugs } & \text { Rails } & \text { Rivets } & \text { Clips } &\begin{array} { l } \text { Machine } \\\text { Capacity } \\\text { mins./year) } \\\end{array}\\\hline 4 & \text { Gross margin/unit } & \$ 0.40 & \$ 1.20 & \$ 0.80 & \$ 1.10 & \\\hline 5 & \text { Minutes/unit } & 1 & 2 & 3 & 1.5 & 250,000 \\\hline 6 & \text { Gross margin/minute } & & & & & \\\hline 7 & \text { Maximum production } & & & & & \\\hline 8 & \text { Profit } & & & & & \\\hline\end{array}$
-What is the total profit generated from the manufacture of only plugs?

• A) $ 66,666.67
• B) $ 100,000.00
• C) $ 183,333.33
• D) $ 150,000.00

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Definitions:

Freight In

The cost associated with transporting goods into a warehouse or to the buyer, which is often included in the inventory cost of those goods.

Net Purchases

The total amount of purchases made by a business after subtracting returns, allowances, and discounts.

Cost of Goods Sold

The immediate expenditures associated with making the goods a company sells.

Credit Terms

Conditions under which credit is extended by a seller to a buyer, including the repayment period, discount for early payment, and the amount of late fees.