ACTG2020_Week5 2014 Ch12CMD (1)

500 chairs and 80 tables d 600 chairs and 100 tables

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Unformatted text preview: t this month. Assume the company follows the plan we have proposed. Up to how much should Colonial Heritage be willing to pay above the usual price to obtain more hardwood? a. $40 per board foot b. $25 per board foot c. $20 per board foot d. Zero LO 3 Managing Constraints The theory of constraints (TOC) maintains that effectively managing a constraint is important to the financial success of an organization. Finding ways to process more units through a resource bottleneck At the bottleneck itself: • Improve the process • Add overtime or another shift • Hire new workers or acquire more machines • Subcontract production • Reduce amount of defective units produced • Add workers transferred from non-bottleneck departments LO 3 Next week: Chapter 12: Relevant costs for decision making Case 6.20 Midterm review Chapters 1-7 (excluding chapter 4) ACTG 2020 Class 5 74...
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