Table 5.2 A Company Makes Four Products That Have the Following Characteristics

question 53

Multiple Choice

Table 5.2
A company makes four products that have the following characteristics: Product A sells for $75 but needs $20 of materials and $20 of labor to produce; Product B sells for $90 but needs $45 of materials and $20 of labor to produce; Product C sells for $110 but needs $50 of materials and $30 of labor to produce; Product D sells for $135 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 is 50 As, 60 Bs, 70 Cs, and 80 Ds 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 5.2. Which work center is the bottleneck operation?

• A) Work Center W
• B) Work Center X
• C) Work Center Y
• D) Work Center Z

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Definitions:

Blockage of CSF

An obstruction in the flow of cerebrospinal fluid (CSF), which can lead to conditions like hydrocephalus, influencing brain pressure.

Thalamus

A brain structure that acts as a relay center, processing and transmitting sensory and motor signals to the cerebral cortex.

Third Ventricle

A median cleft between the two halves of the brain that is filled with cerebrospinal fluid.

First Ventricle

Also known as the left ventricle, a chamber of the heart responsible for pumping oxygenated blood to the aorta and systemic circulation.