Answer the Following Questions Using the Information Below

question 25

Multiple Choice

Answer the following questions 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 total production per day if the change is made?

• A) 6400 units
• B) 800 units
• C) 880 units
• D) 1600 units

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Definitions:

External Source

An origin of information or materials that lies outside the organization or study in question.

Information Search

The phase in the buying process where consumers actively seek out information about products or services to fulfill a need or desire.

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A vehicle that uses a combination of an internal combustion engine and one or more electric motors to improve fuel efficiency and reduce emissions.

Lithium-Ion Battery

A type of rechargeable battery commonly used in portable electronics and electric vehicles, known for its high energy density.