Data for a Factory -
the Theory of Constraints Has Its Own Special Definitions

question 50

Multiple Choice

Data for a factory
$\begin{array}{ll}\text { Total factory cost } & £ 10,000 \\\text { Total time au ailable on key resource (hours) } & 2,500 \\\text { Contribution per unit product A } & £ 34.00 \\\text { Contribution per unit product B } & £ 30.00 \\\text { Contribution per unit product C } & £ 22.00 \\\text { Contribution per unit product D } & £ 20.00 \\\text { Hours required product A } & 12.0 \\\text { Hours required product B } & 6.0 \\\text { Hours required product C } & 6.0 \\\text { Hours required product D } & 8.0\end{array}$

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The theory of constraints has its own special definitions

• A)Throughput = sales + material and purchased services
• B)Throughput = sales - purchased services
• C)Throughput = sales - material and purchased services
• D)Throughput = material and purchased services

Recognize how specialization based on comparative advantage benefits trading partners.

Determine which parties have a comparative or absolute advantage based on opportunity costs.

Understand the principles behind international trade and the gains from trade.

Explore the impact of technological improvements on comparative advantage and production possibilities.

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Definitions:

Actinistia

A subclass of mostly extinct fish, with the modern coelacanths being the only living representatives, characterized by lobed fins.

Coelacanth

A rare order of fish that was thought to be extinct until found alive in 1938, known for its lobed fins which resemble primitive leg structures.

Sacropterygian Fishes

An ancient group of lobe-finned fishes, some of whose descendants evolved into terrestrial vertebrates.

Ancestral

Relating to or inherited from an ancestor or ancestors.