A Production Line Is to Be Designed to Make 500

question 46

Multiple Choice

A production line is to be designed to make 500 El-More dolls per day.Each doll requires 11 activities totaling 16 minutes of work.The factory operates 750 minutes per day.What is the required cycle time for this assembly line?

• A)0.5 minutes
• B)1.5 minutes
• C)2 minutes
• D)5,500 minutes
• E)4.26 minutes

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Definitions:

Revenue from Sales

Represents the income that a company generates from its business activities, typically from the sale of goods or services to customers.

Cost of Merchandise Sold

The direct costs tied to producing the goods that a company sells, thus a direct reflection of the cost of inventory sold.

Gross Profit

The difference between revenue and the cost of goods sold, excluding other operating expenses and taxes.

Income from Operations

The profit earned from a company's everyday business activities, excluding income from other sources and expenses like taxes and interest.