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

question 72

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

• A) 70 W, 60 X, 90 Y, 100 Z
• B) 70 W, 50 X, 50 Y, 30 Z
• C) 70 W, 60 X, 47 Y, 30 Z
• D) 70 W, 47 X, 50 Y, 30 Z

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Definitions:

Negative Reinforcement

The removal of a stimulus following a given behavior in order to increase the frequency of that behavior.

Avoidance Learning

An organism’s learning that it can altogether avoid a negative stimulus by making a particular response.

Modeling

The act of learning by observing and imitating the behaviors of others.

Cytokine

Small proteins released by cells that have a specific effect on the interactions and communications between cells, playing a crucial role in the body's immune response.