Table 7.8 King Supply Makes Four Different Types of Plumbing Fixtures: W,X,Y

question 129

Multiple Choice

Table 7.8
King Supply makes four different types of plumbing fixtures: W,X,Y and Z.The contribution margins for these products are: $70 for Product W,$60 for Product X,$90 for Product Y and $100 for Product Z.Fixed overhead is estimated at $5,500 per week.The manufacture of each fixture 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: 70 Ws,60 Xs,50 Ys and 30 Zs. 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 7.8.Using the traditional method,in what sequence should the fixtures be scheduled for production?

• A)Z,Y,X,W
• B)X,W,Z,Y
• C)Z,Y,W,X
• D)W,X,Y,Z

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Definitions:

Cross-Cultural

Pertaining to or considering the differences and similarities among various cultures, often used in research or studies.

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The position or rank of a person or group within the social hierarchy.

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A theory suggesting that the amount and type of investment parents make in their offspring are determined by the benefits and costs to their own evolutionary fitness.