(CMA)Table Top Produces Tables Sold to Discount Stores

question 83

Multiple Choice

(CMA) Table Top produces tables sold to discount stores. The table tops are manufactured in Canada by Table Top, but the table legs are manufactured in a plant in Nogales, Mexico. The assembly department attaches the four purchased table legs to the table top. It takes 20 minutes of labour to assemble a table. The company follows a policy of producing enough tables to insure that 40% of next month's sales are in the finished goods inventory. Table Top also purchases sufficient raw materials to insure that raw materials inventory is 60% of the following month's scheduled production. Table Top's sales budget in units for the next quarter is as follows:
Table Top's ending inventories in units for June 30, 20x5 are:

Assume that Table Top will produce 1,800 units in the month of September 20x5. How many employees will be required for the assembly department? (Fractional employees are acceptable since employees can be hired on a part-time basis. Assume a 40 hour work week and a 4 week month.)

• A)15 employees
• B)3)75 employees
• C)600 employees
• D)1)5 employees

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Definitions:

Extracellular

Pertaining to being outside the cell membrane.

Plasma Membrane

A biological membrane that separates the interior of all cells from the outside environment, controlling the movement of substances in and out of cells.

Permeable

A characteristic of materials that are able to allow liquids or gases to pass through them, especially through pores or interstices.

Gray Matter

The darker-colored area of the central nervous system; abundant in nerve cell bodies, dendrites, and axon terminals, associated with processing and cognition.