Solved

Quick Shop Printing Has Two Workstations, Cutting and Pasting

question 52

Multiple Choice

Quick Shop Printing has two workstations, cutting and pasting. The cutting station is limited by the speed of operating the cutting machine. Pasting is limited by the speed of the workers. Pasting normally waits on work from cutting. Each department works an eight-hour day. If cutting begins work two hours earlier than pasting each day, the two departments generally finish their work at about the same time. Not only does this eliminate the bottleneck, but it increases finished units produced each day by 80 units. All units produced can be sold even though the change increases inventory stock by 10 percent from 200 units. The cost of operating the cutting department two more hours each day is $800. The contribution margin of the finished products is $3 each. Inventory carrying costs are $0.20 per unit per day. What is the change in the daily contribution margin if the change is made?

Definitions:

Countertransference

involves the redirection of a therapist's feelings and attitudes from their own personal background towards a client.

Reactance

A motivational reaction to offers, persons, rules, or regulations that threaten or eliminate specific behavioral freedoms.

Gestalt Therapy

Gestalt Therapy is an experiential form of psychotherapy that emphasizes personal responsibility and focuses on the individual's experience in the present moment, the therapist-client relationship, and the environmental and social contexts of a person's life.

Perls

Refers to Fritz Perls, a psychiatrist and psychotherapist known for developing Gestalt therapy.