Diane Has Been Asked to Consider Plans to Add the Retrieval

question 22

Multiple Choice

Diane has been asked to consider plans to add the retrieval of larger tooling fixtures to her duties.She anticipates that there would be an average of 12 tooling fixtures per day requested.Each tooling fixture would take Diane 4 minutes to retrieve. What is the average waiting time,in minutes,if Diane continues to be the only worker that would retrieve the small tools as well as the larger tooling fixtures?

• A) 3.50 minutes
• B) 7.00 minutes
• C) 9.25 minutes
• D) 64.00 minutes

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Definitions:

Variable Cost

Costs that change in proportion to the level of production or sales volume, such as raw materials and direct labor.

Machine-hour

A unit of measure representing the operation of a machine for one hour, often used to allocate manufacturing overhead.

Margin of Safety

The difference between actual or projected sales and the break-even point, indicating the buffer amount that sales can decrease before reaching a loss.

Break-even Sales

The amount of revenue required to cover all fixed and variable costs, resulting in neither profit nor loss.