Table 5.3 King Supply Makes Four Different Types of Plumbing Fixtures: W

question 116

Multiple Choice

Table 5.3
King Supply makes four different types of plumbing fixtures: W, X, Y and Z. The contribution margins for these products are: $70 for Product W, $60 for Product X, $90 for Product Y and $100 for Product Z. Fixed overhead is estimated at $5,500 per week. The manufacture of each fixture requires four machines, Machines #1, 2, 3 and 4. Each of the machines is available for 40 hours a week and there is no setup time required when shifting from the production of one product to any other. The processing requirements to make one unit of each product are shown in the table. Weekly product demand for the next planning period has been forecasted as follows: 70 Ws, 60 Xs, 50 Ys and 30 Zs.

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 5.3. Which machine is the bottleneck operation?

• A) Machine 1
• B) Machine 2
• C) Machine 3
• D) Machine 4

---

Definitions:

Hypothesis

A proposed explanation for a phenomenon, made as a starting point for further investigation.

Related Word

Terms or expressions that have a direct connection or association with another word in language or context.

Mentally Retarded

An outdated and offensive term for intellectual disability, which refers to significant limitations in intellectual functioning and adaptive behavior.

Maximizing

The practice of thoroughly considering all available options to make the best possible decision.