Question
6 (3 points) A company makes fudge in a batch process, i.e. they prepare, mix and cook the ingredients in small batches, followed by a
6 (3 points) A company makes fudge in a batch process, i.e. they prepare, mix and cook the ingredients in small batches, followed by a thorough cleanup of the equipment after each batch. For the month of July the company budgeted to make 20,000 lbs. in 200 batches; setup and cleanup costs regarding the batches were budgeted at $10,000 in total. Actual results for July were as follows: they made 24,000 lbs. in 300 batches; setup and cleanup costs regarding the batches cost $18,000 in total. From the above information, it can be said Compared to budget, the company increased batch size, but unfortunately each batch cost too much money for setup/cleanup Compared to budget, the company used too many batches for the actual volume produced, and each batch cost too much money for setup/cleanup Compared to budget, the company used too many batches for the actual volume produced, and they saved on setup/cleanup costs Compared to budget, the company improved its batch efficiency, but unfortunately each batch cost too much money for setup/cleanup
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