Answer the Following Question(s)using the Information Below

question 11

Multiple Choice

Answer the following question(s) using the information below.Speedy Dress Manufacturing has two workstations, cutting and finishing.The cutting station is limited by the speed of operating the cutting machine.Finishing is limited by the speed of the workers.Finishing normally waits for work from cutting.Each department works an eight-hour day.If cutting begins work two hours earlier than finishing each day, the two departments generally finish their work at about the same time.Not only does this eliminate the bottleneck, but also it increases finished units produced each day by 160 units.All units produced can be sold even though the change increases inventory stock by 20% from 400 units.The cost of operating the cutting department two more hours each day is $1,600.The contribution margin of the finished products is $6 each.Inventory carrying costs are $0.40 per unit per day.
-What is the change in the daily contribution margin if the change is made?

• A)$(608)
• B)$(634)
• C)$(672)
• D)$800
• E)$960

Calculate the present value of an annuity.

Understand the relationship between interest rates and investment viability.

Understand the concept of marginal revenue product (MRP) and how it is calculated.

Analyze the relationship between marginal product, labor input, and the derived demand for labor.

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Definitions:

Genetically Closed

Describes populations or species with little to no genetic exchange with others, leading to high genetic similarity within the group.

Arbitrary Category

A classification based on random choice or personal whim, rather than any reason or system.

Systematic Program

A structured and planned sequence of procedures or activities designed to achieve specific goals.

Genocide

The deliberate and systematic destruction of a racial, political, or cultural group.