Question 8 A work system has five stations that have process

Question 8

A work system has five stations that have process times of 5, 9, 4, 9, and 8. What is the bottleneck time?

4

9

18

35

4 points

Question 9

Fabricators, Inc. wants to increase capacity by adding a new machine. The fixed costs for machine A are $90,000, and its variable cost is $15 per unit. The revenue is $21 per unit. What is the break-even point for machine A?

$90,000

90,000 units

$15,000 dollars

15,000 units

Solution

9. break even poing= fixed cost/ selling price - variable cost of the unit

fixed cost= $90,000, selling price= $21, variable cost = $15

= 90,000/21-15= 90,000/6= 15000 units

8. usually bottleneck is the longest activity duration time, so in this problem the bottleneck value is 9. option B is correct