(A)
Interpretation: The profit in product mix by using traditional contribution margin method needs to be determined.
Concept Introduction: Contribution margin is concerned with preparing income statement. Generally for calculating profit or loss in business it is required.
B
Interpretation: The profit (using bottleneck method) for select a product mix needs to be determined.
Concept Introduction: In a product mix, each bottleneck considers as a decision maker. It is a constraint which limits the ability to meet market demand
(C)
Interpretation: The profit gain in value and in percentage needs to be determined.
Concept Introduction: Contribution margin is concerned with preparing income statement. Generally for calculating profit or loss in business it is required.
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Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
- At Fraser engineering. Erix is trying to decide whether to purchase a certain part to to have it produced internally. Internal production could use either of two processes. One would entail a variable cost per unit of $17, and an annual fixed cost of $240,000. Three vendors are willing to provide the part. Vendor A has a price of $20 per-unit for any volume up to 30,000 units Vendor B has a price of $22 per-unit for demand of 1,000 units or less, and $18 per-unit for larger quantities. Vendor C offers a price of $21 per-unit for the first 1,000 units, and $19 for each additional unit. What is the correct formula to use to compare these options? Which options would be best for: I. 10,000 units? ii. 20,000 units? iii. 100,000 units? What is the value in considering these options across three very different demand values ranging from 10,000 to 100,000 units?arrow_forwardThe XYZ company produces all type of office furniture. The “Executive Secretary” is a chair that has been designed using ergonomics to provide comfort during long office hours. The chair sells for $130. There are 480 minutes available during the day, and the average daily demand has been 50 chairs. There are eight tasks; Task Time (min) Immediate predecessor A 4 - B 7 - C 6 A, B D 5 C E 6 D F 7 E G 8 E I 6 F, G a) Draw a precedence diagram of this operation b) What is the cycle time for this operation? c) What is the theoretical minimum number of workstations? d) Assign tasks to the workstations e) What is the idle time per cycle? f) What is the efficiency of the assembly line?arrow_forwardCollege chums Hannah Baltzan and Tyler Phillips are working on opening a third espressodrive-through stand in Highlands Ranch, Colorado, called Brewed Awakening. Their originaldrive-through stand, Jitters, and their second espresso stand, Bean Scene, have done wellin their current locations in Englewood, Colorado, five miles away. Since Hannah and Tylerwant to start with low overhead, they need assistance analyzing the data from the past yearon the different types of coffee and the amounts that they sold from both stands. Hannah andTyler would like a recommendation of the four top sellers to start offering when BrewedAwakening opens. They have provided you with the data file T3_JittersCoffee_Data.xls foryou to perform the analysis that will support your recommendation. Key Jitters = North Bean Scene = South Product Month Store Revenue Regular January North 4320 Regular February North 4500 Regular March North 3528 Regular April North 3960…arrow_forward
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- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,