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

question 83

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.Using the bottleneck method,in what sequence should products be scheduled for production?

• A)N,S,E,P
• B)N,E,P,S
• C)P,E,N,S
• D)E,S,P,N

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Definitions:

Economic Decline

A period characterized by a decrease in the GDP, income, employment, and trade lasting for several months or years.

Unobtainable

Refers to something that cannot be obtained, achieved, or acquired due to various constraints or limitations.

Production Possibilities Frontier

A curve depicting the maximum attainable combinations of two or more products given a fixed amount of resources.

The 1940s

A decade marked by significant events including World War II and its aftermath, leading to major economic, political, and social changes globally.