Table 7.7 A Company Makes Four Products That Have the Following Characteristics

question 57

Multiple Choice

Table 7.7
A company makes four products that have the following characteristics: Product A sells for $75 but needs $20 of materials and $20 of labor to produce;Product B sells for $90 but needs $45 of materials and $20 of labor to produce;Product C sells for $110 but needs $50 of materials and $30 of labor to produce;Product D sells for $135 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 is 50 As,60 Bs,70 Cs,and 80 Ds 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 7.7.Using the traditional method,which product should be scheduled first?

• A)Product A
• B)Product B
• C)Product C
• D)Product D

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Definitions:

Weber's Fear

Refers to Max Weber's concern regarding the increasing rationalization and bureaucracy in society, leading to disenchantment and a loss of individual freedoms.

Inherent Right

A fundamental right believed to be possessed by all individuals inherently, often referring to basic human rights.

Self-Government

The ability of a community, group, or nation to govern itself without external control, often through democratic processes.

Aboriginal People

Indigenous people native to a land or country, especially those with a long history and cultural heritage predating colonialism.