Figure 15-2 the Following Information Relates to Ramesy Manufacturing

question 60

Multiple Choice

Figure 15-2 The following information relates to Ramesy Manufacturing:
To produce a unit of product:
There is a wait time of 5 minutes before the cutting department begins a batch, 15 minutes between the cutting and welding departments, a move and pre-wait between welding and polishing of 12 minutes, and a move and pre-wait between the polishing and finishing departments of 8 minutes.
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Refer to Figure 15-2.If Ramesy produces in batches of 10 units, how much time would have elapsed by the time the 10th unit is produced under a manufacturing cell environment (assuming the cell is processing continuously) ?

• A) 65 minutes
• B) 60 minutes
• C) 150 minutes
• D) some other amount

Understand the impacts of eliminating an unprofitable product line on total net income.

Recognize the principles behind the decision to sell now or process further based on incremental analysis.

Evaluate the implications of capital budgeting decisions on a company's future profitability.

Distinguish between relevant and sunk costs in decision-making scenarios.

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Definitions:

Convertible Bonds

Bonds issued by a corporation that can be converted into a predetermined number of shares of the company's stock at the discretion of the bondholder, usually at certain times during their life.

Stock Options

Contracts that give the holder the right, but not the obligation, to buy or sell a specified amount of stock at a predetermined price within a set time period.

Convertible Preferred Stock

A type of preferred stock that offers the holder the option to convert their shares into a predetermined number of common stock shares, usually after a specific date.

Treasury Stock

Shares that were issued and then reacquired by the issuing company, reducing the amount of outstanding stock.