1) The ___ is the amount by which contribution would be increased if one more unit of the scarce resource were available. a) contribution margin b) shadow price c) opportunity cost d) revenue 2) ___ arises when the company does not use all of the resource available. a) shortage b) slack c) surplus d) none of these 3) If slack is high, it means that the availability of the resource exceeds the amount used by a significant amount. a) True b) False c) cannot be determined 4) When there is one limiting factor, the product with the highest contribution per unit of limiting factor will be ranked first for production purposes. a) True b) False c) cannot be determined 5) What are the cm per unit of limiting factor for the products?? a) $2; $2.5 b) $4; $2.4 c) $8; $6 d) $3.2; $2.5 e) none of these 6) How many hours is the shortfall? a) 2000 hrs b) 1000 hrs c) 3000 hrs d) 4250 hrs e) none of these 7) Which product will be ranked 2nd for the OPP? a) Product E b) Product F 8) What is the shadow price? a) $2.50 b) $2.00 c) $2.40 d) $4.00 e) none of these 9) How many units of product F will be produced, based on the OPP? a) 2800 b) 2917 c) 4000 d) 2500 e) none of these 10) If there is fixed cost of $21,000, how much is the profit for March? a) $36,800 b) $18,500 c) $15,800 d) $6,500 e) none of these

Limiting factor analysis 04

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