Answer the following questions using the information below:
Gourmet Baking Shop has two departments,mixing and baking.The mixing department is limited by the speed of operating the mixing machine.Baking is limited by the speed of the workers.Baking normally waits for work from mixing.Each department works an eight-hour day.If mixing begins work two hours earlier than baking each day,the two departments generally finish their work at about the same time.Not only does this eliminate the bottleneck,but also it increases finished units produced each day by 240 units.All units produced can be sold even though the change increases inventory stock by 20% from 400 units.The cost of operating the mixing department two more hours each day is $1600.The contribution margin of the finished products is $8 each.Inventory carrying costs are $0.40 per unit per day.
-What is the total production per day if the change is made?
A)2400 units
B)1200 units
C)6400 units
D)880 units

Question

Quizplus · Accepted Answer

The change increases finished units produced each day by 240 units. Since this is the increase and not the total production, and there's no initial daily production mentioned, we infer that the total production with the change is 240 units more than what was produced without the change. However, without knowing the original daily production, we cannot determine the exact total production. The information provided does not directly state the total production per day with the change, making all the provided options (A, B, C, D) speculative without additional context. The correct answer cannot be determined from the given information.

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