QRS Corp Is Designing a Product Layout for a New Product

question 98

Multiple Choice

QRS Corp. is designing a product layout for a new product. They plan to use this production line 10 hours a day in order to meet forecasted demand of 900 units per day. The following table describes the tasks necessary to produce this product:
Without considering forecasted demand, what is the minimum possible cycle time for this production line?

• A) 10 seconds
• B) 20 seconds
• C) 34 seconds
• D) 38 seconds
• E) 152 seconds

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Definitions:

Advertising Budget

The amount of money allocated to advertising and promotional activities to generate sales and awareness of products or services.

Monthly Sales

The total amount of sales revenue generated within a calendar month.

Net Operating Income

The total profit of a business after operating expenses are subtracted from gross revenue, but before taxes and interest are deducted.

Variable Expenses Per Unit

Costs that change directly in proportion to changes in production or sales volume, calculated on a per unit basis.