Answer the Following Question(s)using the Information Below

Multiple Choice

Answer the following question(s) using the information below.Quick Shop Printing has two workstations, cutting and pasting.The cutting station is limited by the speed of operating the cutting machine.Pasting is limited by the speed of the workers.Pasting normally waits on work from cutting.Each department works an eight-hour day.If cutting begins work two hours earlier than pasting each day, the two departments generally finish their work at about the same time.Not only does this eliminate the bottleneck, but it increases finished units produced each day by 80 units.All units produced can be sold.The cost of operating the cutting department two more hours each day is $800.The contribution margin of the finished products is $3 each.Inventory carrying costs are $0.20 per unit per day.
-Which of the following sets of sentences has two statements which are TRUE?

A) Poor quality is more costly at a bottleneck workstation than it is at a nonbottleneck workstation.The cost of poor quality at a bottleneck workstation is the cost of materials in waiting.
B) Throughput contribution increases only by increasing bottleneck output.Throughput contribution is not increased when nonbottleneck output is increased.
C) The cost of poor quality at a nonbottleneck operation is the cost of materials wasted.Increasing idle time at the bottleneck operation helps relieve the delays at the nonbottleneck operations.
D) The cost of poor quality at a bottleneck operation is the cost of materials wasted.Increasing idle time at the nonbottleneck operation helps relieve the delays at the bottleneck operations.
E) Throughput contribution increases only by decreasing bottleneck output.Throughput contribution is not increased when nonbottleneck output is increased.