The Maker of the World-Famous Chocolate Chip Cookies Needs to Design

question 131

Multiple Choice

The maker of the world-famous Chocolate Chip Cookies needs to design a product layout for a new product, Mint Chocolate Chip. The company plans to use this new production line eight hours a day in order to meet projected demand of 1,440 cases per day. The following table describes the tasks involved in the production of a case of Mint Chocolate Chip Cookies.
For output to equal projected demand, what will be the first task performed at the third workstation of the production line which uses the minimum number of stations?

• A) u
• B) v
• C) w
• D) x
• E) y

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Definitions:

Variable Cost

Costs that vary in direct proportion to changes in levels of activity or volume of goods produced, such as materials and labor.

Selling Price

The amount charged to customers for a product or service, determining the revenue earned by a business.

Contribution Margin Ratio

A financial metric that measures the portion of revenue remaining after variable costs are subtracted, expressed as a percentage of sales.

Budgeted Sales Revenue

Projected income from sales activities over a specific period, as estimated during budgeting.