Table 7.7 A Company Makes Four Products That Have the Following Characteristics

question 2

Multiple Choice

Table 7.7
A company makes four products that have the following characteristics: Product A sells for $75 but needs $20 of materials and $20 of labor to produce;Product B sells for $90 but needs $45 of materials and $20 of labor to produce;Product C sells for $110 but needs $50 of materials and $30 of labor to produce;Product D sells for $135 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 is 50 As,60 Bs,70 Cs,and 80 Ds 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 7.7.Using the traditional method,in what sequence should products be scheduled for production?

• A)A,B,C,D
• B)A,C,B,D
• C)A,D,B,C
• D)D,B,C,A

---

Definitions:

Pro-environment Behavior

Actions taken by an individual or group aimed at protecting or improving the natural environment.

Behavior Change

The process of transforming or modifying human behaviors, typically aiming at positive or healthier outcomes.

Promoting

The act of supporting or actively encouraging a particular cause, idea, or the sale of products and services.

Defensible Space Theory

A concept in urban planning that proposes architectural and environmental design can help prevent crime by creating spaces that are easily monitored by residents.