Table 5.3 King Supply Makes Four Different Types of Plumbing Fixtures: W

question 26

Multiple Choice

Table 5.3
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 5.3. 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:

Water Consumption

The volume of water utilized by individuals, industries, agriculture, or other entities over a specific period.

National Center for Health Statistics

A U.S. government agency that compiles statistical information to guide actions and policies to improve the health of the American people.

Standard Deviation

A figure representing how much the data in a set deviates from its central value, the mean.

Birthweight

Birthweight is the weight of a baby at the time of its birth, an important indicator of neonatal health and development.