Answer the Following Questions Using the Information Below

question 72

True/False

Answer the following questions using the information below:
Kosciuszko Landscapes produces Landscape photographs for sale through catalogues.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 Kosciuszko Landscapes 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.This eliminates the bottleneck,and increases finished units produced each day by 300 units.All units produced can be sold.The cost of operating the photo production department four more hours each day is $2800.The contribution margin of the finished products is $15 each.
-Conducting business correctly and quickly helps increase revenues and decrease costs.

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Definitions:

Roundabout Trade

Trade activities that involve the importing and exporting of goods through intermediate destinations rather than directly between the primary source and final destination.

Double-Coincidence

The situation in a barter system where two parties each possess an item the other wants, enabling an exchange without the need for a medium of exchange like money.

Barter

Trading goods or services directly without the use of money as a medium of exchange.

Demand Deposits

Balances in bank accounts that depositors can access on demand by writing a check.