Answer the Following Question(s)using the Information Below

question 56

Multiple Choice

Answer the following question(s) using the information below.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.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.
-Which of the following statements is TRUE?

• A)The elimination of defects always increases productivity.
• B)Nonbottleneck operations should be refined for high efficiency before starting on bottleneck improvement because nonbottleneck operations are generally easier to correct and improve.
• C)Throughput contribution is not increased when nonbottleneck output is increased.
• D)Quality and time are seldom related in service industries.
• E)The elimination of defects always decreases revenues.

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