MC Question 19
You will get this Formula Table at the exam so learn well how to apply it in your ACCA PM (F5) Exam
Glam Co is a hairdressing salon which provides both ‘cuts’ and ‘treatments’ to clients. All cuts and treatments at the salon are carried out by one of the salon’s three senior stylists. The salon also has two salon assistants and two junior stylists.
Every client attending the salon is first seen by a salon assistant, who washes their hair; next, by a senior stylist, who cuts or treats their hair depending on which service the client wants; then finally, a junior stylist who dries their hair. The average length of time spent with each member of staff is as follows:
Cut Hours | Treatment Hours | |
---|---|---|
Assistant | 0·1 | 0·3 |
Senior stylist | 1·0 | 1·5 |
Junior stylist | 0·6 | 0·5 |
The salon is open for eight hours each day for six days per week. It is only closed for two weeks each year. Staff salaries are $40,000 each year for each senior stylist, $28,000 each year for each junior stylist and $12,000 each year for each of the assistants. The cost of cleaning products applied when washing clients’ hair is $1·50 per client. The cost of all additional products applied during a ‘treatment’ is $7·40 per client. Other salon costs (excluding labour and raw materials) amount to $106,400 each year.
Glam Co charges $60 for each cut and $110 for each treatment.
The senior stylists’ time has been correctly identified as the bottleneck activity.
What would be the effect on the bottleneck if the salon employed another senior stylist?
A. The senior stylists’ time will be a bottleneck for cuts only
B. The senior stylists’ time will be a bottleneck for treatments only
C. The senior stylists’ time will remain the bottleneck for both cuts and treatments
D. There will no longer be a bottleneck