Answer the following question(s) using the information below.Speedy Dress Manufacturing has two workstations, cutting and finishing.The cutting station is limited by the speed of operating the cutting machine.Finishing is limited by the speed of the workers.Finishing normally waits for work from cutting.Each department works an eight-hour day.If cutting begins work two hours earlier than finishing each day, the two departments generally finish their work at about the same time.Not only does this eliminate the bottleneck, but also it increases finished units produced each day by 160 units.All units produced can be sold even though the change increases inventory stock by 20% from 400 units.The cost of operating the cutting department two more hours each day is $1,600.The contribution margin of the finished products is $6 each.Inventory carrying costs are $0.40 per unit per day.
-What is the total production per day if the change is made?
A) 6400 units
B) 800 units
C) 880 units
D) 1600 units
E) 640 units
Correct Answer:
Verified
Q151: Throughput contribution is equal to revenues minus
Q152: Answer the following question(s)using the information below.Quick
Q153: The theory of constraints focuses on shortrun
Q154: Answer the following question(s)using the information below.Quick
Q155: Answer the following question(s)using the information below.Quick
Q157: Answer the following question(s)using the information below.Speedy
Q158: Brix, Inc., prepares frozen food for fast-food
Q159: The theory of constraints is more useful
Q160: Increasing throughput contribution and managing bottlenecks includes
Q161: A machine has been identified as a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents