5. Which one of the following statements about capacity cushions is best? A. Companies with flexible...

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5. Which one of the following statements about capacity cushions is best? A. Companies with flexible flow processes tend to have smaller capacity cushions. B. Companies with high capital costs tend to have larger capacity cushions. C. Companies that have considerable customization tend to have larger capacity cushions. D. Constant demand rates require larger capacity cushions. 6. Zap Electric Manufacturing makes construction components for home wiring. Their newest product is a receptacle that will use LED light bulbs. Ellie Duncan is in charge of getting the production up and running. Her investigation has revealed some key factors: The cost of renting the machinery is $9,200 per month. The variable cost of producing the component is $.70 per unit. The planned retail price is $.90 per unit. How many units must be produced and sold to breakeven? (QBEP=FC/(r-V)) A. 126,000 B. 46,000 C. 33,000 D. 18,400 Process Management 7. A job shop should be preferred when: A workforce and equipment are specialized. B. products are made to type. C. customization is high and volume is low. D. customization is low and volume is high. 8. What are some advantages of continuous processing? A. The system can accommodate variety and customization. B. Efficiency and volume can be very high. C. The cost of downtime is relatively low. D. The system can be changed easily. 5. Which one of the following statements about capacity cushions is best? A. Companies with flexible flow processes tend to have smaller capacity cushions. B. Companies with high capital costs tend to have larger capacity cushions. C. Companies that have considerable customization tend to have larger capacity cushions. D. Constant demand rates require larger capacity cushions. 6. Zap Electric Manufacturing makes construction components for home wiring. Their newest product is a receptacle that will use LED light bulbs. Ellie Duncan is in charge of getting the production up and running. Her investigation has revealed some key factors: The cost of renting the machinery is $9,200 per month. The variable cost of producing the component is $.70 per unit. The planned retail price is $.90 per unit. How many units must be produced and sold to breakeven? (QBEP=FC/(r-V)) A. 126,000 B. 46,000 C. 33,000 D. 18,400 Process Management 7. A job shop should be preferred when: A workforce and equipment are specialized. B. products are made to type. C. customization is high and volume is low. D. customization is low and volume is high. 8. What are some advantages of continuous processing? A. The system can accommodate variety and customization. B. Efficiency and volume can be very high. C. The cost of downtime is relatively low. D. The system can be changed easily.

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