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

question 78

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.Which machine is the bottleneck operation?

• A)Machine 1
• B)Machine 2
• C)Machine 3
• D)Machine 4

---

Definitions:

Public Nature

Characteristics or attributes that are not private, belonging to or affecting the community or society at large.

Rates of Imprisonment

The proportion or number of individuals within a population who are confined in prison.

European Nations

Countries located in the continent of Europe, each with its distinct government, culture, and history.

U.S.

Short for the United States, a country in North America known for its significant global influence in economic, political, and cultural fields.