Morgenstern Corporation Keeps Careful Track of the Time Required to Fill

question 129

Multiple Choice

Morgenstern Corporation keeps careful track of the time required to fill orders.The times recorded for a particular order appear below:
$$\begin{array} { | l | c | } \hline & \text { Hours } \\\hline \text { Processing Time } & 1.6 \\\hline \text { Inspection Time } & 0.1 \\\hline \text { Moving Time } & 2.6 \\\hline \text { Storing Time } & 7.2 \\\hline\end{array}$$ The Manufacturing Cycle time was:

• A) 4.3 hours.
• B) 31.6 hours.
• C) 27.3 hours.
• D) 11.5 hours.

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Definitions:

Break-even Point

The point at which total revenues equal total costs, resulting in no profit or loss.

Break-even Sales

The amount of sales revenue needed to cover all fixed and variable costs, leading to a situation where there is no profit or loss.

Fixed Costs

Expenses that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums.

Break-even Point

The point at which total costs and total revenues are equal, meaning there is no profit or loss.