Tran-North American Industries Inc

question 68

Multiple Choice

Tran-North American Industries Inc. is looking at a change in its manufacturing process that will cause manufacturing cycle time to increase from 250 hours to 425 hours. The increase in the manufacturing time will result in an estimated loss in revenues of $19,000. Carrying costs are estimated at $2.00 per hour and the controller estimates that 44 orders for raw materials are expected for the year. What is the expected change in revenues as a result of the increase in manufacturing cycle time? (Round the final answer to the nearest whole dollar.)

• A) $34,400
• B) $37,400
• C) $19,000
• D) $3000

---

Definitions:

Forearc Basin

A sedimentary basin that lies between the volcanic arc and the trench in a convergent plate boundary.

Sedimentary Unit

A layer of sedimentary rock with distinguishable characteristics that set it apart as a visually identifiable segment of a stratigraphic sequence.

Pluton

A body of intrusive igneous rock that solidified below the surface of the earth.

Shear Zone

A region of the Earth's crust where rocks have been deformed by shear stress, leading to the alteration of their structure and the development of foliation.