Test: Line Balancing & Break Even Analysis - 2

# Test: Line Balancing & Break Even Analysis - 2

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## 30 Questions MCQ Test GATE Mechanical (ME) 2023 Mock Test Series | Test: Line Balancing & Break Even Analysis - 2

Test: Line Balancing & Break Even Analysis - 2 for Mechanical Engineering 2022 is part of GATE Mechanical (ME) 2023 Mock Test Series preparation. The Test: Line Balancing & Break Even Analysis - 2 questions and answers have been prepared according to the Mechanical Engineering exam syllabus.The Test: Line Balancing & Break Even Analysis - 2 MCQs are made for Mechanical Engineering 2022 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Line Balancing & Break Even Analysis - 2 below.
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Test: Line Balancing & Break Even Analysis - 2 - Question 1

### Match List-l (Parameter) with List-II (Definition) and select the correct answer using the code given below the lists:

Test: Line Balancing & Break Even Analysis - 2 - Question 2

### Process I requires 20 units of fixed cost and 3 units of variable cost per piece, while Process II required 50 units of fixed cost and 1 unit of variable cost per piece. For a company producing 10 piece per day

Detailed Solution for Test: Line Balancing & Break Even Analysis - 2 - Question 2

For 10 pieces, it is economical to use process I.

Test: Line Balancing & Break Even Analysis - 2 - Question 3

### A production line is said to be balanced when

Test: Line Balancing & Break Even Analysis - 2 - Question 4

Match List-I (Methods) with List-II (Applications) and select the correct answer using the codes given below the lists:

Test: Line Balancing & Break Even Analysis - 2 - Question 5

A production system has a product type of layout in which there are four machines laid in series. Each machine does a separate operation. Every product needs all the four operations to be carried out. The designed capacity of each of the four machines is 200, 175, 160 and 210 products per day. The system capacity would be:

Test: Line Balancing & Break Even Analysis - 2 - Question 6

M/s. ABC & Co. is planning to use the most competitive manufacturing process to produce an ultramodern sports shoe. They can use a fully automatic robot-controlled plant with an investment of Rs. 100 million; alternately they can go in for a cellular manufacturing that has a fixed cost of Rs. 80 million. There is yet another choice of traditional manufacture that needs in investment of Rs. 75 million only. The fully automatic plant can turn out a shoe at a unit variable cost of Rs. 25 per unit, whereas the cellular and the job shop layout would lead to a variable cost of Rs. 40 and Rs. 50 respectively. The break even analysis shows that the break even quantities using automatic plant vs traditional plant are in the ratio of 1: 2. The per unit revenue used in the break even calculation is:

Test: Line Balancing & Break Even Analysis - 2 - Question 7

A new facility has to be designed to do all the welding for 3 products: A, B and C, Per unit welding time for each product is 20 s, 40 s and 50 s respectively. Daily demand forecast for product A is 450, for B is 360 and for C is 240. A welding line can operate efficiently for 220 minutes a day. Number of welding lines required is:

Detailed Solution for Test: Line Balancing & Break Even Analysis - 2 - Question 7

Test: Line Balancing & Break Even Analysis - 2 - Question 8

Process X has fixed cost of Rs. 40,000 and variable cost of Rs. 9 per unit whereas process Y has fixed cost of Rs.16, 000 and variable cost of Rs. 24 per unit. At what production quantity, the total cost of X and Yare equal?

Detailed Solution for Test: Line Balancing & Break Even Analysis - 2 - Question 8

Total cost of X = Total cost of Y or Fx + Q.Vx = Fy + Q.Vy

Test: Line Balancing & Break Even Analysis - 2 - Question 9

A company has four work centres A, B, C and D, with per day capacities of 450 units, 390 units, 360 units and 400 units respectively. The machines are laid down in order A, B, C, and D and product has to be operated on all these machines for getting converted into finished product. The actual output turns to be 306 units per day. What is the system efficiency?

Detailed Solution for Test: Line Balancing & Break Even Analysis - 2 - Question 9

Maximum possible output 360 units per day  Actual output is 306 per day

Test: Line Balancing & Break Even Analysis - 2 - Question 10

Which one of the following information combinations has lowest break-even point?

Detailed Solution for Test: Line Balancing & Break Even Analysis - 2 - Question 10

Without any calculation we observe that Revenue of each unit is same for all cases. And Fixed cost and variable cost both are minimum in case of (a). So, it will give us minimum BFQ.

(a) 1000 units  (b) 1600 units  (c) 2500 units         (d) 6000 units

Test: Line Balancing & Break Even Analysis - 2 - Question 11

An operations consultant for an automatic car wash wishes to plan for enough capacity of stalls to handle 60 cars per hour. Each car will have a wash time of 3 minutes, but there is to be a 20% allowance for set-up time, delays and payment transactions. How many car wash stalls should be installed?

Detailed Solution for Test: Line Balancing & Break Even Analysis - 2 - Question 11

No. of wash stall = 4

Test: Line Balancing & Break Even Analysis - 2 - Question 12

The indirect cost of a plant is Rs 4,00,000 per year. The direct cost is Rs 20 per product. If the average revenue per product is Rs 60, the break-even point is:

Detailed Solution for Test: Line Balancing & Break Even Analysis - 2 - Question 12

Sales cost = Fixed cost + variable cost [where, N = Number of variable]
or, 60 × N = 4,00,000 + 20 × N
or, 40N = 4,00,000
or, N = 10000 Products

Test: Line Balancing & Break Even Analysis - 2 - Question 13

An operations consultant for an automatic car wash wishes to plan for enough capacity to handle 60 cars per hour. Each car will have a wash time of 4 minutes, but there is to be a 25% allowance for setup time, delays and payment transactions. How many car wash stalls should be installed?

Detailed Solution for Test: Line Balancing & Break Even Analysis - 2 - Question 13

Wash time for each car = 4 × 1.25 = 5 min.
Number of cars washed in one hour in one stall = 60/5 = 12
Number of car wash stalls to be installed = 60/12 = 5

Test: Line Balancing & Break Even Analysis - 2 - Question 14

If the fixed cost of the assets for a given period doubles, then how much will the break-even quantity become?

Detailed Solution for Test: Line Balancing & Break Even Analysis - 2 - Question 14

Test: Line Balancing & Break Even Analysis - 2 - Question 15

Consider the following sets of tasks to complete the assembly of an engineering component:

The expected production rate is 3000 units per shift of 8 hour duration. The minimal number of workstations that are needed to achieve this production level is

Detailed Solution for Test: Line Balancing & Break Even Analysis - 2 - Question 15

Precedence is such that there is no waiting time. Total time for one assembly is 100 sec.

Test: Line Balancing & Break Even Analysis - 2 - Question 16

Process X has a fixed cost of Rs 40,000 per month and a variable cost of Rs 9 per unit. Process Y has a fixed cost of Rs 16,000 per month and a variable cost of Rs 24 per unit. At which value, total costs of processes X and Y will be equal?

Detailed Solution for Test: Line Balancing & Break Even Analysis - 2 - Question 16

Test: Line Balancing & Break Even Analysis - 2 - Question 17

A product is manufactured by processing on the four work­station (WS). The capacity of each machine on these work­stations is given in the diagram as shown above. In the diagram M1, M2A, M2B, M3, M4A and M4B are the machines and 500, 275, 275, 560, 200 and 200 are their capacities in number of products made per shift. If the products made in this system are 5%, then what will be the output from this system?

Detailed Solution for Test: Line Balancing & Break Even Analysis - 2 - Question 17

Given that products made in the system are 5% defective. Therefore percentage of items without any defects = 100 – 5 = 95.
Among all the four station WS4 station has minimum number of raw material = 400
∴ Output from this system = (200 + 200) × 0.95 = 380

Test: Line Balancing & Break Even Analysis - 2 - Question 18

Consider the following statements:

The break-even point increases
1. If the fixed cost per unit increases
2. If the variable cost per unit decreases
3. If the selling price per unit decreases

Which of the above statements is/are correct?

Detailed Solution for Test: Line Balancing & Break Even Analysis - 2 - Question 18

Therefore if the Fixed Cost/Unit i.e. CF increases the value of x increased i.e. B.E.P. increases.
If the variable cost/unit, i.e. CV decreases × decreases i.e. B.E.P. decreases.
If the selling price i.e. CS decreases the value of × increases i.e. B.E.P. increases. Therefore statements (1) and (3) are correct.

Test: Line Balancing & Break Even Analysis - 2 - Question 19

Match List-I (PPC functions) with List-II (Activity) and select the correct answer using the codes given below the lists:

Detailed Solution for Test: Line Balancing & Break Even Analysis - 2 - Question 19

PPC: Production planning and control.

Test: Line Balancing & Break Even Analysis - 2 - Question 20

If the total investment is Rs. 5,00,000 for a target production, the income for the current year is Rs. 3,00,000 and total operating cost is Rs. 1,00,000; what is the economic yield?

Detailed Solution for Test: Line Balancing & Break Even Analysis - 2 - Question 20

Test: Line Balancing & Break Even Analysis - 2 - Question 21

A work shift is for 8 hours duration; 30 minutes lunch break and two 15 minutes (each) tea breaks are allowed per shift. If products are to go out after assembly at the rate of 60 per shift, and total assembly time content for a product is 42 minutes, then minimum number of work stations needed is:

Detailed Solution for Test: Line Balancing & Break Even Analysis - 2 - Question 21

Effective work 7 hr/shift. Effective work hour needed to produce 60 per shift = 42 hr/shift.
∴ Work station needed = 42/7 = 6.

Test: Line Balancing & Break Even Analysis - 2 - Question 22

Based on the given graph, the economic range of batch sizes to be preferred for general purpose machine (OP), NC machine (NC) and special purpose machine (SP) will be:

Test: Line Balancing & Break Even Analysis - 2 - Question 23

Match List-I (Element of cost) with List-II (Nature of cost) and select the correct answer using the codes given below the lists:

Test: Line Balancing & Break Even Analysis - 2 - Question 24

Assertion (A): A larger margin of safety in break-even analysis is helpful for management decision.

Reason (R): If the margin of safety is large, it would indicate that there will be profit even when there is a serious drop in production.

Test: Line Balancing & Break Even Analysis - 2 - Question 25

Fixed investments for manufacturing a product in a particular year is Rs. 80,000/- The estimated sales for this period is 2, 00,000/-. The variable cost per unit for this product is Rs. 4/-. If each unit is sold at Rs.20/-, then the break even point would be:

Detailed Solution for Test: Line Balancing & Break Even Analysis - 2 - Question 25

For break even point,

Fixed cost (F) + Var iable  cost (V) × Quantity (Q)
= Selling price (S) × Quantity (Q)

Test: Line Balancing & Break Even Analysis - 2 - Question 26

Match List -I (Sym bols) with List-II (Meaning) and select the correct answer using the codes given below the Lists; related to P/V chart on Break-Even Analysis as shown in the above figure:

Test: Line Balancing & Break Even Analysis - 2 - Question 27

The fixed costs for a year is Rs. 8 lakhs, variable cost per unit is Rs. 40/- and the selling price of each unit is Rs. 200/-. If the annual estimated sales is Rs. 20,00,000/-, then the break-even volume is :

Detailed Solution for Test: Line Balancing & Break Even Analysis - 2 - Question 27

F + Q.V = Q.S  or,  700000 + Q × 40 = Q × 200
∴ Q = 4375  nearest as 5000

Test: Line Balancing & Break Even Analysis - 2 - Question 28

If Break-even point = Total fixed cost  then X is the

Detailed Solution for Test: Line Balancing & Break Even Analysis - 2 - Question 28

F + VQ = SQ
[S is selling cost per unit]

Test: Line Balancing & Break Even Analysis - 2 - Question 29

Two jigs are under consideration for a drilling operation to make a particular part. Jig A costs Rs. 800 and has operating cost of Rs. 0.10 per part. Jig B costs Rs. 1200 and has operating cost of Rs. 0.08 per part. The quantity of parts to be manufactured at which either jig will prove equally costly is:

Detailed Solution for Test: Line Balancing & Break Even Analysis - 2 - Question 29

Test: Line Balancing & Break Even Analysis - 2 - Question 30

A company sells 14,000 units of its product. It has a variable cost of Rs. 15 per unit. Fixed cost is Rs. 47,000 and the required profit is Rs. 23,000  Per unit product price (in Rs.) will be:

Detailed Solution for Test: Line Balancing & Break Even Analysis - 2 - Question 30

F + Q.V + P = Q.S
or 4700 + 14000 × 15 + 23000 = 14000 × S or  S = 20 per unit.

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