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At the Moslund Plant, the assembly line consists of 3 conveyor belts.

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At the Moslund Plant, the assembly line consists of 3 conveyor belts.  [#permalink]

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New post Updated on: 06 Nov 2019, 04:06
Project IR Butler 2019-20 - Get one IR Question Everyday
Question # 36, Date : 05-Nov-2019
This post is a part of Project IR Butler 2019-20. Click here for Details


Year 10
At the Moslund Plant, the assembly line consists of 3 conveyor belts. In addition, there are 3 inspection posts, one at the end of each conveyor belt. In Year 10 (Y10), 15 workers were employed directly on the line; 3 of these workers staffed the inspection posts, one at each post. In Y10, the Moslund Plant assembly line had an output of 250,000 units and generated a profit of $15,000,000.


Year 11
For Year 11 (Y11), the Moslund Plant assembly line was modernized as follows:

  • Conveyor-belt speeds were increased by a fixed percentage.
  • The assembly line’s administrative unit was restructured to maximize efficiency.
  • Each inspection post was automated, and the 3workers who formerly staffed the posts were laid off and were not replaced.
  • There were no other personnel changes on the assembly line for Y11.


Attachment:
2.jpg
2.jpg [ 67.8 KiB | Viewed 1234 times ]


Which one of the following statements is supported by the information provided about the assembly line and the assembly-line modernization plan at the Moslund Plant?

A. On the assembly line, conveyor-beit speed is directly proportional to total annual output of assembled units.

B. Administrative unit restructuring accounted for the greatest increase in the dollar amount of profit from Y10 to Y11.

C. Conveyor-belt speed increase accounted for the greatest increase in the dollar amount of profit from Y10 to Y11.

D. Conveyor-belt speed increase accounted for the greatest increase in annual output of assembled units from Y10 to Y11.

E. Inspection-post automation accounted for the greatest increase in annual output of assembled units from Y10 to Y11.

Spoiler: :: OA
D

Originally posted by madgmat2019 on 24 Sep 2019, 02:23.
Last edited by SajjadAhmad on 06 Nov 2019, 04:06, edited 4 times in total.
Updated - Complete topic (11).
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Re: At the Moslund Plant, the assembly line consists of 3 conveyor belts.  [#permalink]

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New post 05 Nov 2019, 15:33
For each of the following statements about the Moslund Plant assembly line in Y11, select Yes if it is true based solely on the information provided. Otherwise, select No.

The assembly line generated a profit of $16,500,000. (Yes as this is 15m$ +10%)


Total output from the assembly line increased by 25,000 units over the total output for Y10. (No as 5% of 250K units is not equal to 25K units)


Administrative unit restructuring accounted for 1% of the total profit. (CAN SOMEONE PLEASE ADVISE ON THIS ONE?? WHY IS THE ANSWER NO SINCE IN THE TAB WE CAN SEE BELOW RESULTING INCREASE IN PROFIT 1%
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Re: At the Moslund Plant, the assembly line consists of 3 conveyor belts.  [#permalink]

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New post 17 Nov 2019, 09:11
Angieless wrote:
For each of the following statements about the Moslund Plant assembly line in Y11, select Yes if it is true based solely on the information provided. Otherwise, select No.

The assembly line generated a profit of $16,500,000. (Yes as this is 15m$ +10%)


Total output from the assembly line increased by 25,000 units over the total output for Y10. (No as 5% of 250K units is not equal to 25K units)


Administrative unit restructuring accounted for 1% of the total profit. (CAN SOMEONE PLEASE ADVISE ON THIS ONE?? WHY IS THE ANSWER NO SINCE IN THE TAB WE CAN SEE BELOW RESULTING INCREASE IN PROFIT 1%


I believe this is so because we have to account for the 'cost to implement,' which is $15000, when determining total profit.
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At the Moslund Plant, the assembly line consists of 3 conveyor belts.  [#permalink]

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New post 20 Nov 2019, 12:10
Angieless wrote:
For each of the following statements about the Moslund Plant assembly line in Y11, select Yes if it is true based solely on the information provided. Otherwise, select No.

The assembly line generated a profit of $16,500,000. (Yes as this is 15m$ +10%)


Total output from the assembly line increased by 25,000 units over the total output for Y10. (No as 5% of 250K units is not equal to 25K units)


Administrative unit restructuring accounted for 1% of the total profit. (CAN SOMEONE PLEASE ADVISE ON THIS ONE?? WHY IS THE ANSWER NO SINCE IN THE TAB WE CAN SEE BELOW RESULTING INCREASE IN PROFIT 1%


Administrative unit restructuring accounted for an increase of 1% of Y10's profit; not 1% of total profit. As we do not know how much this factor accounted in Y10, this cannot be determined.
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Re: At the Moslund Plant, the assembly line consists of 3 conveyor belts.  [#permalink]

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New post 22 Nov 2019, 19:51
Angieless in the first question, why do you not subtract the cost to implement from the profit?
Obviously the initiatives increase the assembly line profit initially 10% ($15M * 1.1 = $16.5M), but would you not have to subtract the $160,000 cost to implement from that to be $14.9M in Y11? How do you know not to subtract cost to implement?

2794Aditya on the third question, it shouldn't matter how much it makes up of Y10 given that the question is asking about Y11. The total profit increases 1% (so $150,000, or $135,000 if you include the cost of implementation, to my first point). 150,000 / 16,500,000 would be less than 1% but round to 1%

Thanks all for any help you can provide
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Re: At the Moslund Plant, the assembly line consists of 3 conveyor belts.   [#permalink] 22 Nov 2019, 19:51
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