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

question 63

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.Using the traditional method,what is the optimal product mix?

• A)120 E,90 S,60 P,55 N
• B)60 E,20 S,50 P,33 N
• C)80 E,65 S,35 P,5 N
• D)80 E,65 S,20 P,35 N

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Definitions:

Segmental Contractions

Segmental contractions refer to the rhythmic contraction and relaxation of segments of the intestines, aiding in the mixing and absorption of nutrients.

Small Intestine

A long, coiled section of the intestinal tract where most digestion and absorption of nutrients occurs.

Circular Folds

Series of folds on the inner surface of the intestine that increase its surface area for absorption.

Microvilli

Tiny hair-like structures on the surface of some cells that increase surface area for absorption or secretion.