16. Ship sells the hangings for $30 a foot. Given the costs below calculate the

Question

16. Ship sells the hangings for $30 a foot. Given the costs below calculate the contribution margin and the Throughput for Cut, Paste & Ship. The contribution margin per unit and Throughput per unit is respectively:

a. $20 & $16
b. $16 & $22
c. $22 & $16
d. $16 & $24
e. none of the answers above are correct.

17. The manager of Hornet Coffee shop buys a second grinding unit that increases grinding capacity by 50% and Throughput per cup is $.50 per cup. What is the maximum price he should pay to have it payback in 200 hours? Current capacities before purchase of the new machine are:

a. $13,000
b. $5,000
c. $6,000
d. $10,000
e. None of the above

18.
(Points: 1)
Select the best answer. Why do we treat labor as a fixed cost under TOC Management?

a. We do not treat labor as fixed cost.
b. Laying off employees is part of management’s strategy to reduce costs.
c. TOC relies more on team control than other management strategies.
d. TOC uses the detailed reporting systems required for ABM and scientific management.
e. Under TOC labor is reduced as incremental capacity increases.
Save Answer

19. The Moondollar café has the following costs for producing 1,000 cups of coffee. Staffing levels are fixed. Use the strict TOC definitions.

If coffee sells for $1.00 a cup the Throughput per cup is:

a. $.73 per cup
b. $.80 per cup
c. $.93 per cup
d. $.94 per cup
e. $.95 per cup

20.Cut, Paste and Ship make color wall hangings. All can operate the same number of days. Their production capacities are listed below:

Which process is the constraint?

a. Cut
b. Paste
c. Ship
d. cut and paste
e. all of the above are constraints

Activity Fixed cost Direct materials Direct Labor Cut $1,000 $8 per foot $2 per foot Paste $500 0 $3 per foot Ship $2,000 0 $1 per foot

Explanation / Answer

16. a. $20 & $16 17. b. $5,000 18. c. TOC relies more on team control than other management strategies. 19. e. $.95 per cup 20.c. Ship

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.