The Bharu Violin Corporation Has the Capacity to Manufacture and Sell

question 152

Multiple Choice

The Bharu Violin Corporation has the capacity to manufacture and sell 5,000 violins each year but is currently only manufacturing and selling 4,800. The following data relate to annual operations at 4,800 units: Woolgar Symphony Orchestra is interested in purchasing Bharu's excess capacity of 200 units but only if they can get the violins for $350 each. This special order would not affect regular sales or the total fixed costs.If the special order from Woolgar Symphony Orchestra is accepted, the financial advantage (disadvantage) Bharu for the year should be:

• A) $40,000
• B) ($10,000)
• C) ($22,000)
• D) ($28,000)

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Definitions:

Process Layout

An arrangement of resources in a manufacturing or service setting where similar processes or functions are grouped together, which is beneficial for handling a variety of products or services.

Product Layout

An arrangement of machinery, equipment, and staff within a production facility where the workstations and equipment are ordered by the sequence of operations.

Basic Types

Fundamental categories or classifications within a broader system or concept.

Locations

Specific places or positions where businesses or activities are situated or conducted.