Question:
106. Which product makes the
LEAST profitable use of the grinding machines?
A) Product A
B) Product B
C) Product C
D) Product D
107. Which product makes the MOST profitable use of the grinding
machines?
A) Product A
B) Product B
C) Product C
D) Product D
108. Up to how much should the company be willing to pay for one
additional minute of grinding machine time if the company has made the best use
of the existing grinding machine capacity? (Round off to the nearest whole
cent.)
A) $0.00
B) $14.68
C) $34.90
D) $11.60
109. How many minutes of milling machine time would be required to
satisfy demand for all four products?
A) 19,900
B) 17,000
C) 14,600
D) 7,000
110. Which product makes the LEAST profitable use of the milling
machines?
A) Product A
B) Product B
C) Product C
D) Product D
111. Which product makes the MOST profitable use of the milling
machines?
A) Product A
B) Product B
C) Product C
D) Product D
112. Up to how much should the company be willing to pay for one
additional minute of milling machine time if the company has made the best use
of the existing milling machine capacity? (Round off to the nearest whole
cent.)
A) $11.00
B) $0.00
C) $3.80
D) $13.40
113. Rank the products in order of their current profitability from most
profitable to least profitable. In other words, rank the products in the order
in which they should be emphasized.
A) TC, NG, GL
B) GL, NG, TC
C) GL, TC, NG
D) TC, GL, NG
114. Assume that sufficient constraint time is available to satisfy
demand for all but the least profitable product. Up to how much should the
company be willing to pay to acquire more of the constrained resource?
A) $12.40 per minute
B) $18.20 per minute
C) $129.22 per unit
D) $95.76 per unit
115. Rank the products in order of their current profitability from most
profitable to least profitable. In other words, rank the products in the order
in which they should be emphasized.
A) JT, SM, VD
B) JT, VD, SM
C) VD, SM, JT
D) SM, VD, JT
Answer
Which product makes the LEAST profitable use of the grinding machines? Product A Product B Product C Product D Ans: C Solution: Optimal production plan: Product A Product B Product C Product D Selling price per unit ………………………. $69.50 $74.80 $59.50 $59.60 Direct materials per unit …………………. 10.60 7.90 6.10 3.80 Direct labor per unit ……………………….. 11.40 16.80 8.70 11.40 Variable manufacturing overhead per unit …………………………………………………. 3.70 4.10 5.40 6.10 Variable selling cost per unit .
