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

question 110

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.Using the bottleneck method,what is the optimal product mix (consider variable costs only-overhead is not included in this profit calculation) ?

• A)71 A,80B,80C,80 D
• B)80A,72B,80C,80D
• C)80A,80B,60C,80D
• D)80A,80B,80C,70D

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Definitions:

Unipolar Depression

A major depressive disorder characterized by persistent and intense feelings of sadness or despair without the episodes of mania that occur in bipolar disorder.

Social Anxiety Disorder

Social Anxiety Disorder is a chronic mental health condition characterized by intense fear and avoidance of social situations due to feelings of embarrassment, self-consciousness, and concern about being judged or negatively evaluated by others.

GAD

Generalized Anxiety Disorder, characterized by persistent and excessive worry about a number of different things.

Physiological Arousal

The body's response to external stimuli, resulting in physical and psychological reactions, such as increased heart rate and heightened alertness.