(TCO 8) ABC Motors, Inc., wants to increase capacity by adding anothe

01 May (TCO 8) ABC Motors, Inc., wants to increase capacity by adding anothe

Question
QUIZ 4

1.

Question :

(TCO 8) ABC Motors, Inc., wants to increase capacity by adding another wheel balancer. The fixed costs for the machine is $16,000, and its variable cost is $4.50 per unit. ABC charges $8.50 to balance one wheel, the break-even point for the balancer. What is her break-even point in units?

Student Answer:

250 wheels

1600 wheels

3000 wheels

4000 wheels

Instructor Explanation:

Points Received:

5 of 5

Comments:

2.

Question :

(TCO 9) A full-service restaurant is considering opening a new facility in a specific city. The table below shows its ratings of four factors at each of two potential sites.

Factor

Weight

Wind City

State Line

Affluence of local population

.40

25

25

Traffic flow

.20

50

20

Parking availability

.10

30

40

Growth petential

.30

10

30

The score for Wind City is _____ and the score for State Line is ______.

Student Answer:

Wind City = 7.00; State Line = 7.25

Wind City = 14; State Line = 14.50

Wind City = 28; State Line = 29

Wind City = 26; State Line = 27

Instructor Explanation:

Points Received:

0 of 5

Comments:

3.

Question :

(TCO 8) A fleet repair facility has a design capacity to repair 800 trucks per month. However, due to scheduled maintenance of their equipment, management feels that they can repair no more than 600 trucks per month. Last month, two of the employees were absent several days each and only 500 trucks were repaired. What is the utilization of the repair shop last month?

Student Answer:

30.1%

50%

62.5%

25%

Instructor Explanation:

Points Received:

5 of 5

Comments:

4.

Question :

(TCO 8) A fleet repair facility has the capacity to repair 800 trucks per month. However, due to scheduled maintenance of their equipment, management feels that they can repair no more than 600 trucks per month. Last month, two of the employees were absent several days each, and only 300 trucks were repaired. What was the efficiency of the repair shop last month?

Student Answer:

33.4 %

29.8 %

50 %

66.7%

Instructor Explanation:

See equation S7-1, Chapter 7, Page 283. Efficiency = actual output/effective capacity = (300/600) x 100 = 0.5 x 100 = 50%

Points Received:

5 of 5

Comments:

5.

Question :

(TCO 8) Design capacity is the:

Student Answer:

maximum output of a system in a given period

actual production over a specified time period in ideal conditions

average output that can be achieved under ideal conditions

maximum usable capacity of a particular facility

the capacity a firm expects to achieve given the current operating constraints

Instructor Explanation:

Chapter 7, Page 282

Points Received:

3 of 3

Comments:

6.

Question :

(TCO 8) Fixed costs are:

Student Answer:

costs that vary with volume of units produced.

the difference between the selling price and variable costs.

not a part of the break even analysis.

costs that do not continue even if no units are produced.

none of the above

Instructor Explanation:

Chapter 7, Page 294

Points Received:

3 of 3

Comments:

7.

Question :

(TCO 9) A location decision for an appliance manufacturer would tend to have a(n):

Student Answer:

education focus

labor focus

revenue focus

environmental focus

cost focus

Instructor Explanation:

Chapter 8, Page 315

Points Received:

3 of 3

Comments:

8.

Question :

(TCO 9) Globalization of the location decision is the result of all of the following except:

Student Answer:

market economics

higher differences in labor costs

ease of capital flow between countries

higher quality of labor overseas

more rapid, reliable travel and shipping

Instructor Explanation:

Chapter 8

Points Received:

3 of 3

Comments:

9.

Question :

(TCO 9) Community attitudes, zoning restrictions, and quality of labor force are likely to be considered in which of the following location decision methods?

Student Answer:

transportation method

locational break-even analysis

factor rating method

simulation

factor processes

Instructor Explanation:

Figure 8.1, Chapter 8, Pages 315 and 323

Points Received:

3 of 3

Comments:

Page:

12

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Continue part 2

1.

Question :

(TCO 8) What are the four special considerations for a good capacity decision?

Student Answer:

Instructor Explanation:

r change.

Points Received:

5 of 5

Comments:

2.

Question :

(TCO 8) Distinguish between utilization and efficiency.

Student Answer:

Instructor Explanation:

Points Received:

5 of 5

Comments:

3.

Question :

(TCO 9) List at least five intangible costs associated with location decisions?

Student Answer:

Instructor Explanation:

Points Received:

5 of 5

Comments:

4.

Question :

(TCO 9) Why is the factor-rating method popular?

Student Answer:

Instructor Explanation:

Points Received:

5 of 5

Comments:

5.

Question :

(TCO 9) Why do foreign firms build facilities in the U.S.? Provide at least three reasons.

Student Answer:

Instructor Explanation:

Points Received:

5 of 5

Comments:

Page:

12

* Times are displayed in (GMT-07:00) Mountain Time (US & Canada)