29 Jun Question 36. Ken Yalters, the COO of Fr
Question
36. Ken Yalters, the COO of FreshSkin, asked his cost management team for a product line profitability analysis for his firm’s two products –
Askin and Bskin. The two products are skin care products that require a large amount of research and development and advertising. He received the report below. Ken concluded that Askin was the more profitable product, and that perhaps cost-cutting measures should be applied to the Bskin product.
Seventy-five percent of the research and development and selling expenses were traceable to Askin.
Profit before taxes for the Bskin product, per life-cycle income statements, is:
A. $175,000.
B. $425,000.
C. $522,500.
D. $207,500.
E. $332,500.
37. The management accountant at Iang Manufacturing Co. collected the following data in preparation for a life-cycle analysis on one of its products, a leaf blower:
The stage of the sales life cycle the product is determined to be:
A. Introduction.
B. Growth
C. Maturity.
D. Decline.
E. Withdrawal.
38. Which of the following is a theory of constraints (TOC) measure of product profitability that equals price less materials cost, including all purchased components and materials handling costs?
A. Takt time.
B. Throughput margin.
C. Profitability margin.
D. Price analysis.
E. A
F. B
G. C
H. D
39. The management accountant at Jang Manufacturing Co. collected the following data in preparation for a life-cycle analysis on one of its products, a leaf blower:
The stage of the sales life cycle the product is in is:
A. Introduction.
B. Growth.
C. Maturity.
D. Decline.
E. Withdrawal.
40.Bryan Inc. produces a specialty top-quality juice machine. The product, the JM50, requires four processes to be completed. Specifically, these processes are exterior construction, pulp filter insertion, painting, and packaging. Each process is performed at separate workstations with different completion rates:
Exterior construction can manufacture 100,000 juicer exteriors per day. Pulp filter insertion can install 25,000 filters every 6 hours.
Painting can decorate 3,000 juicers every half hour. Packaging can package 5,000 juicers per hour.
The plant operates 24/7, 24 hours a day every day of the week.
How many JM50 machines can Bryan Inc. manufacture per month (assume an average 30 day month)?
A. 4,320,000 juicers.
B. 3,600,000 juicers.
C. 3,000,000 juicers.
D. 3,200,000 juicers.
41. Bryan Inc. produces a specialty top-quality juice machine. The product, the JM50, requires four processes to be completed. Specifically, these processes are exterior construction, pulp filter insertion, painting, and packaging. Each process is performed at separate workstations with different completion rates:
Exterior construction can manufacture 100,000 juicer exteriors per day. Pulp filter insertion can install 25,000 filters every 6 hours.
Painting can decorate 3,000 juicers every half hour. Packaging can package 5,000 juicers per hour.
The plant operates 24/7, 24 hours a day every day of the week. Which function(s) is/are the bottleneck(s)?
A. Exterior construction and pulp filter insertion.
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