11. Which ofthe following is true of a bottleneck? (1 mark) A) It occurs in an operation when the work to be performed approaches or exceeds the capacity available to do it. B) It occurs in an operation when there is excess capacity to complete the work given. C) It is the uncertainty about when customers will order products or services. D) It is the time taken by a manufacturing department to produce a finished product. 12. Shelly Corp. manufactures small windows for back yard sheds. Historically, its demand has ranged from 30 to 50 windows per day with an average of 43. Alex is the one production worker and he works eight hours a day, five days a week. Each order is one window and each window takes 5 minutes. What is the average waiting time in minutes? (1 mark) A) 2.50 B) 4.06 C) 2.03 D) 21.50 13. Seven Mile Corp. has a budget of $910,000 in 2022 for prevention costs. If it decides to automate a portion of its prevention activities, it will save $80,800 in variable costs. The new method will require $40,500 in training costs and $103,000 in annual equipment costs. Management is willing to adjust the budget for an amount up to the cost of the new equipment. The budgeted production level is 151,000 units. Appraisal costs for the year are budgeted at $606,000. The new prevention procedures will save appraisal costs of $50,400. Internal failure costs average $15 per failed unit of finished goods. The internal failure rate is expected to be 2% of all completed items. The proposed changes will cut the internal failure rate by one-third. Internal failure units are destroyed. External failure costs average $50 per failed unit. The company's average external failures average 2% of units sold. The new proposal will reduce this rate by 50%. Assume all units produced are sold and there are no ending inventories. How much do external failure costs change if all changes are as anticipated with the new prevention procedures? Assume all units produced are sold and there are no ending inventories. (1 mark) A) $75,500 decrease B) $75,500 increase C) $151,000 decrease D) None of these answers is correct