Answer the Following Question(s)using the Information Below

question 71

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.
-What is the change in the daily contribution margin if the change is made?

• A)$1,200
• B)$(128)
• C)$(560)
• D)$240
• E)$(568)

---

Definitions:

Auto Repair

The service of fixing or maintaining vehicles to ensure they operate correctly and safely.

Simple Majority Vote

A voting method where the choice receiving more than half of the votes wins, as opposed to an absolute majority that may require a higher threshold.

Operating Agreement

An agreement containing various rights, provisions, and powers that aid in establishing the bylaws of an LLC.

Legal Rights

Rights bestowed upon individuals or entities by the law, protecting their interests and enforcing duties upon others.