Figure 15-1 the Following Information Relates to Markely Manufacturing

question 105

Multiple Choice

Figure 15-1 The following information relates to Markely Manufacturing:
To produce a unit of product:
There is a wait time of 8 minutes before the mixing department begins a batch, 5 minutes between the mixing and molding departments, a move and pre-wait between molding and casting of 10 minutes, and a move and pre-wait between the casting and finishing departments of 12 minutes.
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Refer to Figure 15-1.What is the production rate?

• A) 30 units per hour
• B) 4 units per hour
• C) 10 units per hour
• D) 15 units per hour

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Definitions:

Low-margin Items

Products or services that generate a minimal profit margin, often sold to attract customers or achieve volume sales.

Contribution Margin Ratio

A financial metric indicating the portion of sales revenue that is not consumed by variable costs and therefore contributes to covering fixed costs.

Unit Contribution Margin

The difference between the selling price per unit and the variable cost per unit.

Break-even Point

The level of production or sales volume at which total revenues equal total costs, resulting in no net profit or loss.