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Table 7.6 Burdell Industries Makes Four Different Models of Computer Printers: the Printers

question 78

Multiple Choice

Table 7.6
Burdell Industries makes four different models of computer printers: the E-1000,the S-2000,the P-2000 and the N-1000.The E-1000 sells for $200 and has $40 in parts and $40 in labor;the S-2000 sells for $150 and requires $30 in parts and $30 in labor;the P-2000 sells for $100 and has $20 in parts and $20 in labor;and the N-1000 sells for $75 but requires only $10 of parts and $10 of labor.Fixed overhead is estimated at $5,000 per week.The manufacture of each printer requires four machines,Machines #1,2,3 and 4.Each of the machines is available for 40 hours a week and there is no setup time required when shifting from the production of one product to any other.The processing requirements to make one unit of each product are shown in the table.Weekly product demand for the next planning period has been forecasted as follows: 80 E-1000s;65 S-2000s;35 P-2000s;and 20 N-1000s. 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 7.6.Which machine is the bottleneck operation?

Definitions:

Preoperational

A stage in Piaget's theory of cognitive development, during which children aged 2 to 7 years old develop memory and imagination but do not yet think logically.

Preoperational Stage

A stage in Piaget's theory of cognitive development, occurring roughly between the ages of 2 and 7, marked by rapid language acquisition and symbolic thinking.

Age

A measure of the time an individual or object has existed, often used to describe developmental stages in humans.

Egocentrism

An important feature of preoperational thought: the inability to distinguish between one’s own and someone else’s perspective.