Table 7.8 King Supply Makes Four Different Types of Plumbing Fixtures: W,X,Y

question 30

Multiple Choice

Table 7.8
King Supply makes four different types of plumbing fixtures: W,X,Y and Z.The contribution margins for these products are: $70 for Product W,$60 for Product X,$90 for Product Y and $100 for Product Z.Fixed overhead is estimated at $5,500 per week.The manufacture of each fixture 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: 70 Ws,60 Xs,50 Ys and 30 Zs. 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 7.8.Using the bottleneck method,which product should be scheduled first?

• A)Fixture W
• B)Fixture X
• C)Fixture Y
• D)Fixture Z

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Definitions:

Implantation

The process by which a fertilized egg attaches itself to the lining of the uterus to begin pregnancy.

Placenta

An organ that develops in the uterus during pregnancy, providing oxygen and nutrients to the growing fetus while removing waste products.

Developing Organism

A Developing Organism refers to any living entity, from single-celled forms to humans, in the stages of growth and development from conception to maturity.

Cephalocaudal Pattern

The pattern of development that proceeds from the head down.