Table 7.5 A Company Makes Four Products That Have the Following Characteristics

question 110

Multiple Choice

Table 7.5
A company makes four products that have the following characteristics: Product A sells for $50 but needs $10 of materials and $15 of labor to produce;Product B sells for $75 but needs $30 of materials and $15 of labor to produce;Product C sells for $100 but needs $50 of materials and $30 of labor to produce;Product D sells for $150 but needs $75 of materials and $40 of labor to produce.The processing requirements for each product on each of the four machines are shown in the table. Work centers W,X,Y,and Z are available for 40 hours per week and have no setup time when switching between products.Market demand for each product is 80 units per week.In the questions that follow,the traditional method refers to maximizing the contribution margin per unit for each product,and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product.
-Use the information in Table 7.5.Using the bottleneck method,what is the optimal product mix (consider variable costs only-overhead is not included in this profit calculation) ?

• A)71 A,80B,80C,80 D
• B)80A,72B,80C,80D
• C)80A,80B,60C,80D
• D)80A,80B,80C,70D

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Definitions:

Single X

Single X refers to the presence of a single X chromosome in humans, typically denoting Turner syndrome in females, where there is a missing or partially missing X chromosome.

Turner Syndrome

A genetic disorder in females characterized by the partial or complete absence of one X chromosome, leading to various developmental and physical abnormalities.

Menstruate

Refers to the regular, cyclic discharge of blood and mucosal tissue from the inner lining of the uterus through the vagina, part of the female reproductive cycle.

PKU

A genetic disorder known as phenylketonuria, characterized by a deficiency in the enzyme required to metabolize the amino acid phenylalanine, leading to intellectual disability if untreated.