Quality Control Mean Chart Calculation Quiz
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Questions and Answers

What is the main reason a manager might consider redesigning a process?

  • To increase process variability
  • To eliminate unacceptable output
  • To relax specifications
  • To meet specifications (correct)
  • In the context of Quality Control Capability analysis, when is a process considered capable?

  • When the Cp value is at least 1.33 (correct)
  • When the process SD is less than 6
  • When the capability is less than the specification width
  • When the process variability exceeds specifications
  • What is one way to handle a process that is deemed not capable based on Quality Control Capability analysis?

  • Eliminate unacceptable output using 100% inspection
  • Use an alternative process (correct)
  • Relax the specifications
  • Increase the process variability
  • What does a Process Capability Ratio (Cp) of 1.33 imply?

    <p>Only about 30 parts per million are expected to not be within the specification</p> Signup and view all the answers

    Which action might a manager take if examining the specifications during Quality Control Capability analysis?

    <p>Relax the specifications without affecting customer satisfaction</p> Signup and view all the answers

    How does Process Capability Ratio (Cp) influence the capability of a process?

    <p>A Cp of 1.33 indicates high capability</p> Signup and view all the answers

    What would be a manager's primary concern if the process capability was less than the specification width?

    <p>Meeting specifications effectively</p> Signup and view all the answers

    What would increasing both upper and lower specifications result in?

    <p>Decrease in parts per million exceeding specifications</p> Signup and view all the answers

    Which assumption of cost-volume analysis is violated if a company produces multiple products?

    <p>One product is involved</p> Signup and view all the answers

    If the fixed cost of setting up a production line is $200,000 and the variable cost per unit is $300, what is the break-even quantity if the cost of buying each unit is $1,200?

    <p>$Q = 667$</p> Signup and view all the answers

    If the revenue per unit is $1,500 and the variable cost per unit is $800, what is the maximum possible contribution per unit?

    <p>$700</p> Signup and view all the answers

    If a company has a fixed cost of $100,000 and a variable cost of $20 per unit, what is the minimum revenue required to break even if 10,000 units are produced?

    <p>$400,000</p> Signup and view all the answers

    If the revenue per unit is constant with volume, but the variable cost per unit decreases as volume increases, what happens to the break-even point?

    <p>The break-even point decreases</p> Signup and view all the answers

    Which of the following is not an assumption of cost-volume analysis?

    <p>Revenue per unit may change with volume</p> Signup and view all the answers

    If a company has a fixed cost of $250,000 and a variable cost of $10 per unit, what is the minimum number of units that must be sold at $20 per unit to generate a profit?

    <p>25,000</p> Signup and view all the answers

    If a company's variable cost per unit is $5 and the selling price per unit is $10, what is the maximum possible contribution per unit?

    <p>$5</p> Signup and view all the answers

    If a company has a fixed cost of $100,000 and a variable cost of $20 per unit, what is the total cost if 5,000 units are produced?

    <p>$200,000</p> Signup and view all the answers

    If a company has a fixed cost of $500,000 and a variable cost of $50 per unit, and the selling price per unit is $100, what is the minimum number of units that must be sold to generate a profit?

    <p>15,000</p> Signup and view all the answers

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