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Gnoma [55]
3 years ago
14

C&A’s potato chip filling process has a lower specification limit of 9.5 oz. and an upper specification limit of 10.5 oz. Th

e standard deviation is 0.3 oz. and the mean is 10 oz. What is the process capability index for the chip filling process?
Business
1 answer:
abruzzese [7]3 years ago
5 0

Answer:

The process capability index of the chip filling process is 0.56

Explanation:

In this question, we are asked to calculate the process capability index for the chip filing process.

To calculate this, we employ a mathematical approach.

Mathematically;

The process capability index = (upper specification limit- lower specification limit)/ 6σ

Where σ refers to the standard deviation.

From the question, we identify the following;

Upper specification limit = 10.5 oz

Lower specification limit = 9.5 oz

Standard deviation σ = 0.3

Substituting these in the equation, we have;

(10.5-9.5)/6(0.3) = 1/1.8 = 0.56

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18,000 boxes

Explanation:

1500×3×4 or

1500×12

8 0
3 years ago
Earl holds 1,000 pounds of perishable fruit in storage for fresh food corporation. fresh food does not pay for the storage. earl
Sergeeva-Olga [200]
This sale represent A MITIGATION OF DAMAGE.
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8 0
3 years ago
Dudley Transport Company divides its operations into four divisions. A recent income statement for its West Division follows. DU
Ghella [55]

Answer:

Companywide income would increase by $6,000 if West Division is eliminated.

Explanation:

The amount by which the companywide income will increase or decrease if West Division is eliminated can be determined by comparing Revenue with avoidable cost.

Avoidable cost refers to the cost that will be eliminated or not incurred if a firm decides to change the course of a business.

In this question, avoidable cost is simply the cost or expenses that will be eliminated if West Division is eliminated.

Among all the expenses in the question, only Companywide facility-sustaining costs which is $78,000 cannot be eliminated if West Division is eliminated.

Therefore, avoidable cost can be calculated as follows:

Avoidable cost = Salaries for drivers + Fuel expenses + Insurance + Division-level facility-sustaining costs = 210,000 + 30,000 + 42,000 + 24,000 = $306,000

Since, Revenue = $300,000

Decision rule:

1. If revenue is greater than avoidable cost, we have a decrease in income. Therefore, the division should not be eliminated.

2. If revenue is less than avoidable cost, we have an increase in income. Therefore, the division should be eliminated.

Since the revenue of $300,000 is less than the avoidable cost of $306,000, it implies we have an increase in income based on the decision rule 2. The increase in income is calculated as follows:

Increase in income if West Division is eliminated = Avoidable cost – Revenue = $306,000 - $300,000 = $6,000

Therefore, companywide income would increase by $6,000 if West Division is eliminated

Since there would be an increase in income of $6,000, West Division should therefore be eliminated.

4 0
3 years ago
The next dividend payment by Savitz, Inc., will be $2.34 per share. The dividends are anticipated to maintain a growth rate of 4
STALIN [3.7K]

Answer:

a. 10.8%

b. 6.32%

c. 4.5%

Explanation:

a. Required return= (Expected dividend payment/current stock price) + dividend growth rate

Required return= (2.34/37)+0.045

Required return= 0.108  ⇒ 10.8%

b. Dividend yield= dividend per share / price per share

Dividend yield= 2.34/37= 0.0632 ⇒ 6.32%

c. The capital gains yield refers to the rise in the price of the stock. In this case, the statement indicates that the dividends are anticipated to maintain a growth rate of 4.5 percent forever and according to the definition of capital gains yield that would be the answer for the expected capital gains yield.

3 0
3 years ago
Bentels Co. desires a December 31 ending inventory of 2,840 units. Budgeted sales for December are 4,000 units. The November 30
LekaFEV [45]

Answer:

Budgeted purchases      Units

Budgeted sales                4,000

Ending inventory               2,840

Beginning inventory         <u> (1,800)</u>      

Budgeted purchases        <u>  5,040</u>      

The correct answer is A                                                                                                                  

Explanation:

Budgeted purchases equal budgeted sales plus ending inventory minus beginning inventory.                            

6 0
3 years ago
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