Exhibit 3-2 Western Chassis Produces High-Quality Polished Steel and Aluminum Sheeting and Sheeting

question 3

Essay

Exhibit 3-2
Western Chassis produces high-quality polished steel and aluminum sheeting and two lines of industrial chassis for the rack mounting of Internet routers, modems, and other telecommunications equipment. The contribution margin (contribution toward profit) for steel sheeting is $0.40 per pound and for aluminum sheeting is $0.60 per pound. Western earns $12 contribution on the sale of a Standard chassis rack and $15 contribution on a Deluxe chassis rack. During the next production cycle, Western can buy and use up to 25,800 pounds of raw unfinished steel either in sheeting or in chassis. Similarly, 20,400 pounds of aluminum are available. One standard chassis rack requires 16 pounds of steel and 8 pounds of aluminum. A Deluxe chassis rack requires 12 pounds of each metal. The output of metal sheeting is restricted only by the capacity of the polisher. For the next production cycle, the polisher can handle any mix of the two metals up to 4,000 pounds of metal sheeting. Chassis manufacture can be restricted by either metal stamping or assembly operations; no polishing is required. During the cycle no more than 2,500 total chassis can be stamped, and there will be 920 hours of assembly time available. The assembly time required is 24 minutes for the Standard chassis rack and 36 minutes for the Deluxe chassis rack. Finally, market conditions limit the number of Standard chassis racks sold to no more than 1,200 Standard and no more than 1,000 Deluxe. Any quantities of metal sheeting can be sold.
-Refer to Exhibit 3-2.What is the value of additional capacity on the polisher
How much increase and decrease in this capacity is possible before a change occurs in the optimal production schedule

Understand the concept of contributory and comparative negligence in the context of workers' compensation.

Recognize the significance of the general duty clause under OSHA.

Understand the eligibility for workers' compensation benefits and the limitations of such benefits.

Recognize the role of the National Institute for Occupational Safety and Health (NIOSH) in workplace safety.

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Definitions:

Axiom

A statement or proposition that is regarded as being established, accepted, or self-evidently true.

Corollary

A proposition that follows from one already proven, often seen as a natural consequence or result.

Theory

A system of ideas intended to explain something, based on general principles independent of the thing to be explained.

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.