Question : Answer the following questions using the information below: Speedy Dress Manufacturing : 1211926

Answer the following questions 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.

6) What is the total production per day if the change is made?

A) 6400 units

B) 800 units

C) 880 units

D) 1600 units

7) What is the change in the daily contribution margin if the change is made?

A) $(608)

B) $(634)

C) $(672)

D) $800

Answer the following questions using the information below:

Captain Carl’s Seascapes produces sea pictures for sale through catalogs. The company has two workstations, photo production and framing. The photo production station is limited by the speed of operating the photo development machine. Framing is limited by the speed of the employees. Framing normally waits for work from photo production. Each department works an eight-hour day. If Captain Carl’s Seascapes adds an earlier half shift so that photo production begins work four hours earlier than framing each day, the two departments generally finish their work at about the same time. Not only does this eliminate the bottleneck, but it also increases finished units produced each day by 200 units. All units produced can be sold. The cost of operating the photo production department four more hours each day is $1,250. The contribution margin of the finished products is $10 each.

8) What is the total production per day if the change is made?

A) 50 units

B) 200 units

C) 400 units

D) 600 units

9) What is the change in the daily contribution margin if the change is made?

A) $250

B) $750

C) $2,000

D) $800

10) The manufacturing cycle including related delays can be reduced by ________.

A) batching similar jobs together for processing

B) decreasing the capacity of a bottleneck resource

C) not setting up flexible manufacturing systems

D) increasing the time for setups and processing

11) Manufacturing cycle times affect both revenues and costs.

12) Longer manufacturing cycle times increase the inventory carrying costs and decrease revenues.

13) Increasing the capacity of a bottleneck resource increases manufacturing cycle times and delays.

14) One way to increase capacity is to reduce the time it takes for setups and processing.

15) Investing in a new equipment, such as flexible manufacturing systems that can be programmed to switch quickly from producing one product to producing another can decrease capacity as it would incur excess overhead costs.