A Product Is Sold for $130

question 162

Multiple Choice

A product is sold for $130. Its cost consists of $25 of direct materials, $10 of direct labor, and $30 of manufacturing overhead. What is the throughput margin?

• A) $105
• B) $95
• C) $130
• D) $65

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Definitions:

Data

Information collected for reference or analysis.

Inference

The process of using data analysis to deduce properties of an underlying distribution of probability; drawing conclusions about populations based on sample data.

Optimization Models

Mathematical models that are designed to find the best possible solution or outcome from a set of parameters or constraints.

Prescriptive Analytics

The set of analytical techniques that yield a best course of action.