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

question 7

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. Using the bottleneck method, what is the optimal product mix?

Definitions:

EBCM

Electronic Brake Control Module, a component that controls the electronic aspects of a vehicle's brake system.

Electrohydraulic Unit

A device that combines hydraulic and electrical technologies to control various mechanical systems, enhancing efficiency and precision.

High-Pressure Accumulators

Devices that store energy under high pressure, often used in hydraulic systems to absorb shock or maintain pressure.

Integral ABS Systems

Advanced braking systems in vehicles that integrate Anti-lock Braking System (ABS) functionality into the vehicle's overall brake control system for improved safety.