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

question 19

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.Which work center is of greatest concern to the operations manager?

• A)Work Center W
• B)Work Center X
• C)Work Center Y
• D)Work Center Z

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Definitions:

Workout Clothing

Apparel specifically designed for physical exercise, offering comfort, flexibility, and sweat-wicking properties to enhance athletic performance.

Substitutes

Products or services that can replace each other in use, where an increase in price of one leads to an increased demand for the other.

Sneakers

Casual footwear designed primarily for sports or other forms of physical exercise, but which are now also widely used for everyday wear.

Hiking Boots

Footwear specifically designed for the activity of hiking, offering support, durability, and protection for the feet.