Use the following information to answer the questions) below.
Cerebro Manufacturing produces four types of structural support fittings-plugs, rails, rivets, and clips-which are machined on two CNC machining centers. The machining centers have a capacity of 250,000 minutes per year. The gross margin per unit and machining requirements are shown in the spreadsheet below. $\begin{array}{|l|l|l|l|l|l|l|}
\hline&{\text { A }} & \text { B } &C&D&E&F\
\hline 1 & \text { Cerebro } & \
& \text { Manufacturing Model } & \
\hline 2 & & \
\hline3 & \text { Product } & \text { Plugs } & \text { Rails } & \text { Rivets } & \text { Clips } &\begin{array} { l }
\text { Machine } \
\text { Capacity } \
\text { mins./year) } \
\end{array}\
\hline 4 & \text { Gross margin/unit } & \$ 0.40 & \$ 1.20 & \$ 0.80 & \$ 1.10 & \
\hline 5 & \text { Minutes/unit } & 1 & 2 & 3 & 1.5 & 250,000 \
\hline 6 & \text { Gross margin/minute } & & & & & \
\hline 7 & \text { Maximum production } & & & & & \
\hline 8 & \text { Profit } & & & & & \
\hline
\end{array}$
-What is the total profit generated from the manufacture of rivets?
A) $ 66,666.67
B) $ 100,000.00
C) $ 183,333.33
D) $ 150,000.00

Question

Use the following information to answer the questions) below.
Cerebro Manufacturing produces four types of structural support fittings-plugs, rails, rivets, and clips-which are machined on two CNC machining centers. The machining centers have a capacity of 250,000 minutes per year. The gross margin per unit and machining requirements are shown in the spreadsheet below. $\begin{array}{|l|l|l|l|l|l|l|} 
\hline&{\text { A }} & \text { B } &C&D&E&F\
\hline 1 & \text { Cerebro } & \
 & \text { Manufacturing Model } & \
\hline 2 & & \
\hline3 & \text { Product } & \text { Plugs } & \text { Rails } & \text { Rivets } & \text { Clips } &\begin{array} { l  } 
\text { Machine } \
\text { Capacity } \
\text { mins./year) } \
\end{array}\
\hline 4 & \text { Gross margin/unit } & \$ 0.40 & \$ 1.20 & \$ 0.80 & \$ 1.10 & \
\hline 5 & \text { Minutes/unit } & 1 & 2 & 3 & 1.5 & 250,000 \
\hline 6 & \text { Gross margin/minute } & & & & & \
\hline 7 & \text { Maximum production } & & & & & \
\hline 8 & \text { Profit } & & & & & \
\hline
\end{array}$
-What is the total profit generated from the manufacture of rivets?
A) $ 66,666.67
B) $ 100,000.00
C) $ 183,333.33
D) $ 150,000.00

Quizplus · Accepted Answer

To calculate the total profit generated from the manufacture of rivets, we first need to determine the gross margin per minute for rivets. The gross margin per unit for rivets is $0.80, and it takes 3 minutes to machine each unit. Therefore, the gross margin per minute for rivets is $0.80 / 3 = $0.2667.Given the machine capacity of 250,000 minutes per year, the maximum number of rivets that can be produced in a year is 250,000 minutes / 3 minutes per rivet = 83,333.33 rivets.Therefore, the total profit generated from the manufacture of rivets is 83,333.33 rivets * $0.80 per rivet = $66,666.67.

Use the Following Information to Answer the Questions) Below -What Is the Total Profit Generated from the Manufacture of Manufacturing