Answer the following question(s)using the information below.Quick Shop Printing has two workstations, cutting and pasting.The cutting station is limited by the speed of operating the cutting machine.Pasting is limited by the speed of the workers.Pasting normally waits on work from cutting.Each department works an eight-hour day.If cutting begins work two hours earlier than pasting each day, the two departments generally finish their work at about the same time.Not only does this eliminate the bottleneck, but it increases finished units produced each day by 80 units.All units produced can be sold.The cost of operating the cutting department two more hours each day is $800.The contribution margin of the finished products is $3 each.Inventory carrying costs are $0.20 per unit per day.
-What is the daily capacity of the pasting workstation based on a ten hour day?
A)320
B)400
C)440
D)800
E)820

Question

Quizplus · Accepted Answer

The pasting workstation can handle 400 units in a ten-hour day, as it waits on cutting and the increase of 80 units from the additional cutting time suggests pasting's capacity is 400 units (320 units in 8 hours plus 80 units).

Answer the Following Question(s)using the Information Below