Question

Captain Carl's Seascapes produces sea pictures for sale through catalogs. The company has two workstations, photo production and framing. The photo production station is limited by the speed of operating the photo development machine. Framing is limited by the speed of the employees. Framing normally waits for work from photo production. Each department works an eight-hour day. If Captain Carl's Seascapes adds an earlier half shift so that photo production begins work four hours earlier than framing each day, the two departments generally finish their work at about the same time. Not only does this eliminate the bottleneck, but it also increases finished units produced each day by 230 units. All units produced can be sold. The cost of operating the photo production department four more hours each day is $1,340. The contribution margin of the finished products is $20 each. What is the total production per day if the change is made? O A. 690 units OB. 460 units O C. 230 units OD. 57.5 units

Answer 1

Answer: (A) 690 Units Production increased 230 Units due to aditional 4 hours shift So production per hour is = 230 units / 4 hours 57.5 units per hour Total production hours 8 hours normal shift + additional 4 hours shift 12 hours Total production Total production hours * Production per hour 12 hours * 57.5 units per hour 690 units