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

question 96

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. Which work center is of greatest concern to the operations manager?

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

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Definitions:

1930s

The 1930s was a decade marked by the Great Depression, a global economic downturn, and significant social, political, and cultural changes, leading up to World War II.

My Lai Massacre

A mass killing of unarmed South Vietnamese civilians by U.S. troops in 1968 during the Vietnam War, causing widespread outrage and increasing opposition to the war.

Burger Court

The term refers to the time when Warren E. Burger served as Chief Justice of the United States Supreme Court, from 1969 to 1986, characterized by significant rulings including those on abortion and the death penalty.