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

question 51

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 bottleneck method,which product should be scheduled first?

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

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Definitions:

Lymphatic Trunks

These are large lymphatic vessels that drain lymph from different parts of the body into the bloodstream.

Subclavian Veins

Large veins in the shoulder area that receive blood from the arms and the thoracic wall.

Innate Immunity

The body's first line of defense against infections, comprising physical, chemical, and cellular defenses that are present from birth.

Adaptive Immunity

The aspect of immunity that is developed as a result of exposure to a pathogen, providing long-term protection and memory against specific pathogens.