Table 5.1 A Company Makes Four Products That Have the Following Characteristics

question 135

Multiple Choice

Table 5.1
A company makes four products that have the following characteristics: Product A sells for $50 but needs $10 of materials and $15 of labor to produce; Product B sells for $75 but needs $30 of materials and $15 of labor to produce; Product C sells for $100 but needs $50 of materials and $30 of labor to produce; Product D sells for $150 but needs $75 of materials and $40 of labor to produce. The processing requirements for each product on each of the four machines are shown in the table.

Work centers W, X, Y, and Z are available for 40 hours per week and have no setup time when switching between products. Market demand for each product is 80 units per week. In the questions that follow, the traditional method refers to maximizing the contribution margin per unit for each product, and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
-Use the information in Table 5.1. Using the traditional method, which product should be scheduled first?

• A) Product A
• B) Product B
• C) Product C
• D) Product D

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Definitions:

Receptive

Being open and responsive to ideas, stimuli, or inputs from the external environment.

Visual Agnosia

A neurological disorder characterized by the inability to recognize or understand visual information despite having normal eyesight.

Broca's Area

An area located in the dominant hemisphere's frontal lobe of the brain, associated with the production of speech.

Right Parietal

Pertaining to the right side of the parietal lobe in the brain, which is involved in processing sensory information and spatial orientation.