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

question 134

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, in what sequence should the fixtures be scheduled for production?

• A) Z, Y, X, W
• B) X, W, Z, Y
• C) Z, Y, W, X
• D) W, X, Y, Z

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Definitions:

Performance Criteria

Specifies the expected levels of employee performance or outcomes, used to evaluate the effectiveness of tasks and duties.

Operant Model

A behavioral model focusing on the modification of observable behaviors through reinforcement and punishment.

Immediate Consequences

The direct and instant outcomes or results that follow a specific behavior or action.

Reactive Effects

Changes in behavior that occur as a result of being observed or knowing that one is being studied, often considered in psychological and social research.