Captain Carl's Seascapes Produces Sea Pictures for Sale Through Catalogs

question 24

Multiple Choice

Captain Carl's Seascapes produces sea pictures for sale through catalogs. The company has two workstations, photo production and framing. The photo production station is limited by the speed of operating the photo development machine. Framing is limited by the speed of the employees. Framing normally waits for work from photo production. Each department works an eight-hour day. If Captain Carl's Seascapes adds an earlier half shift so that photo production begins work four hours earlier than framing each day, the two departments generally finish their work at about the same time. Not only does this eliminate the bottleneck, but it also increases finished units produced each day by 200 units. All units produced can be sold. The cost of operating the photo production department four more hours each day is $1310. The contribution margin of the finished products is $20 each.
What is the change in the daily contribution margin if the change is made?

• A) $250
• B) $2690
• C) $4000
• D) $200

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Definitions:

Spleen

An organ located under the ribcage and above the stomach in the left upper quadrant of the abdomen, playing a vital role in immune response and blood filtration.

Phonemes

The tiniest sounds in languages that have the power to differentiate words.

Language

A structured system of communication, consisting of spoken, written, or gestured symbols that are used to convey meaning and thought.

Sound

Sound is a vibration that travels through the air or another medium and can be heard when it reaches a person's or animal's ear.