Please Help Sir — OpenTuition Forums

Zzohaib5y ago

WB manufactures automated industrial trolleys, knows as TLRs. Each PLR sells for $2,500 and the material cost per unit is $800. There is no limit to sales demand. Costs next year will be $264,000 for factory labour $834,000 for production overheads, and $265,000 for marketing and administrative costs. The trolleys are made on two different machines. Machine Z can produce the parts for 40 TLRs each week but it is old and unreliable and it break down from time to time. It is estimated that on average 15% of production time on this machine is lost. Machine P, which is reasonably reliable, can process and assemble 30 TLRs per week. The company operates a 40- hour week , 48 weeks a year. The throughput accounting ratio for the key resource for an average hour next year will be: E. 1.078 F. 1.268 G. 2.230 H. 1.574

John MoffatTutor5y ago#1

Please do not simply type out a full question and expect to be provided with a full answer. You must have an answer in the same book in which found the question, so ask about whatever it is in the answer than you are not clear about and then I will explain :-)

Zzohaib5y ago#2

Throughput /Unit = 1700 problem is that Limiting factor / unit only consider 40/30 unit per weak = 1.333 units/hr why only machine P units consider

John MoffatTutor5y ago#3

Machine Z can produce parts for 85% x 40 = 34 units per week, but machine P can only assemble 30 units per week. Therefore it is machine P that is limited production and is the bottleneck resource. Therefore the time per unit in the bottleneck is 40/30 = 1.333 hours. So the throughput return per hour = (2,500 - 800) / 1.333 = $1,275.