McGraw Hill Connect Chapter 7 Questions Study Guide 2026 | Practice
Questions & Test Prep
What is the first of the three simple steps in the high-level view of manufacturing? - ANS
✔✔Sourcing the parts we need
Dell's primary consumer business takes orders from customers for specific configurations of
desktop and laptop computers. Customers must select from a certain model line of computer
and choose from available parts, but within those constraints they may customize the computer
as they desire. Once the order is received, Dell assembles the computer as ordered and delivers
it to the customer.
What type of manufacturing process is described here? - ANS ✔✔Assemble-to-order
A book publisher has fixed costs of $360,000 and variable costs per book of $11.00. The book
sells for $27.00 per copy.
a. How many books must be sold to break even?
Note: Roundup your answer to the next whole number.
b. If the fixed cost increased, would the new break-even point be higher or lower?
c. If the variable cost per unit decreased, would the new break-even point be higher or lower? -
ANS ✔✔a. Breakeven point = Fixed cost/ Price per copy - variable cost per copy) Breakeven
point = 360000 / (27-11) Breakeven point = 22500 copies
b. Higher
c. Lower
, -----------------
Explanation:
a. The break-even point is where total cost equals total revenue. Total costs include the fixed
cost (FC) plus the variable cost (VC) times the number of books sold (Q). Total revenue equals
the selling price (SP) times the number of books sold (Q). Solve for the value of Q that satisfies
the following: FC + (VC × Q) = SP × Q, which is equivalent to: Q = FC ÷ (SP − VC).
b. Increasing the fixed cost will increase the total cost for any level of production per sales. That
will require a higher level of revenue to offset the increased total costs.
c. Decreasing the unit variable cost will decrease the total cost for any level of production per
sales. As a result, less revenue will be required to offset the total costs.
Process selection refers to the strategic decision of choosing the volume of output to produce in
a manufacturing facility depending upon the way that facility produces. - ANS ✔✔FALSE
Process selection refers to the strategic decision of selecting which kind of production processes
to use to produce a product or provide a service.
Process selection refers to the strategic decision of selecting which kind of production processes
to use to produce a product or provide a service. - ANS ✔✔TRUE
Process selection refers to the strategic decision of selecting which kind of production processes
to use to produce a product or provide a service.
One trade-off illustrated by the product-process matrix is between flexibility and cost. - ANS
✔✔TRUE
To produce nonstandard products at relatively low volumes, workcenters (flexible) should be
used. A highly standardized product (low-cost commodity) produced at high volumes should be
produced using an assembly line or a continuous process.
Questions & Test Prep
What is the first of the three simple steps in the high-level view of manufacturing? - ANS
✔✔Sourcing the parts we need
Dell's primary consumer business takes orders from customers for specific configurations of
desktop and laptop computers. Customers must select from a certain model line of computer
and choose from available parts, but within those constraints they may customize the computer
as they desire. Once the order is received, Dell assembles the computer as ordered and delivers
it to the customer.
What type of manufacturing process is described here? - ANS ✔✔Assemble-to-order
A book publisher has fixed costs of $360,000 and variable costs per book of $11.00. The book
sells for $27.00 per copy.
a. How many books must be sold to break even?
Note: Roundup your answer to the next whole number.
b. If the fixed cost increased, would the new break-even point be higher or lower?
c. If the variable cost per unit decreased, would the new break-even point be higher or lower? -
ANS ✔✔a. Breakeven point = Fixed cost/ Price per copy - variable cost per copy) Breakeven
point = 360000 / (27-11) Breakeven point = 22500 copies
b. Higher
c. Lower
, -----------------
Explanation:
a. The break-even point is where total cost equals total revenue. Total costs include the fixed
cost (FC) plus the variable cost (VC) times the number of books sold (Q). Total revenue equals
the selling price (SP) times the number of books sold (Q). Solve for the value of Q that satisfies
the following: FC + (VC × Q) = SP × Q, which is equivalent to: Q = FC ÷ (SP − VC).
b. Increasing the fixed cost will increase the total cost for any level of production per sales. That
will require a higher level of revenue to offset the increased total costs.
c. Decreasing the unit variable cost will decrease the total cost for any level of production per
sales. As a result, less revenue will be required to offset the total costs.
Process selection refers to the strategic decision of choosing the volume of output to produce in
a manufacturing facility depending upon the way that facility produces. - ANS ✔✔FALSE
Process selection refers to the strategic decision of selecting which kind of production processes
to use to produce a product or provide a service.
Process selection refers to the strategic decision of selecting which kind of production processes
to use to produce a product or provide a service. - ANS ✔✔TRUE
Process selection refers to the strategic decision of selecting which kind of production processes
to use to produce a product or provide a service.
One trade-off illustrated by the product-process matrix is between flexibility and cost. - ANS
✔✔TRUE
To produce nonstandard products at relatively low volumes, workcenters (flexible) should be
used. A highly standardized product (low-cost commodity) produced at high volumes should be
produced using an assembly line or a continuous process.
