Use the following information to answer the question(s) below. Cerebro Manufactu

Question

Use the following information to answer the question(s) below. Cerebro Manufacturing produces four types of structural support fittings-plugs, rails, rivets, and clips-which are machined on two CNC machining centers. The machining centers have a capacity of 250,000 minutes per year. The gross margin per unit and machining requirements are shown in the spreadsheet below. Cerebro Manufacturing Model 2 Machine Product Plugs Rails Rivets Clips Capacity (mins.lyear) Gross margin/unit Minutes/unit Gross margin/minute Maximum production Profit $0.40 $1.20 0.80$1.10 250,000 What is the maximum possible production of rails based on the machine capacity? 125,000.00 83,333.33 166,666.67 250,000.00

Explanation / Answer

Option A

Since it takes 2 minute per rail

and availability is 250000 minutes

Max produced = 250000/2 = 125000

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