Avocado Ltd Produces Small Electronic Components for Kitchen Appliances

question 32

Multiple Choice

Avocado Ltd produces small electronic components for kitchen appliances. Two of its products are Component Y and Component Z. The selling price of Component Y is $15, and the selling price of Component Z is $20. The variable cost per unit for Component Y is $8 and the variable cost per unit of Component Z is $11. The machine hour requirement and demand for the two products are:
Both Component Y and Component X have to undergo the machining process first, followed by a manual polishing labour process. Avocado Ltd's capacity is 6500 machine hours and 6500 labour hours. The top priority of Avocado Ltd in terms of managing constraints is to:

• A) increase advertising to stimulate greater demand for Component Z.
• B) train employees to improve productivity in relation to polishing.
• C) invest in additional machines.
• D) lower the price of Component Y to simulate demand.

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Definitions:

Property Crime

Crimes that involve the theft of personal property or destruction of property without causing physical harm to another person.

Arson

The intentional act of setting fire to property, buildings, or wildland areas with malicious intent.

Willful Destruction By Fire

An act of intentionally setting fire to property, typically constituting a criminal offense.

Forgery

The act of falsely making or altering a document with the intent to defraud, such as signing another person's name to a check.