Answer:
A. 45
B.2,235
C. 1.9%
Explanation:
A. Calculation to determine the amount of value-added
VALUE ADDED TIME
PC board Assembly 4
Final Assembly 20
Testing 9
Packaging and labeling 12
Total Value added time 45
Therefore the amount of value-added is 45
B. Calculation to determine non-value-added lead time
NON-VALUE-ADDED LEAD TIME
Wait time for non added value 2,205
[45*(50-1)]
Add Test set up time 30
Wait time 2,235
Therefore The non-value-added lead time is 2,235
C. Calculation to determine the value-added ratio
Value added time 45
Non value added lead time:
Wait time lead time 2,235
Move time lead time 32
(12+20)
Total lead time 2,312
Value added ratio 1.9%
(45/2312*100)
Therefore the value-added ratio is 1.9%
<span>The answer is d. quantity demanded equals quantity supplied</span>
Answer: No. She turns away business when the cost of an additional unit exceeds the income from it.
Explanation:
In order to maximize production, the optimal point at which Hester should wash cars is the point where marginal revenue equals marginal cost. Marginal cost should not be above marginal revenue because it would mean that a marginal loss is being made.
At the 101st car, Hester would make a marginal loss of $0.05 because the cost of $10.05 to wash exceeds the revenue of $10.00 that she charges the customer. She should therefore not accept this or additional business because it will lead to her incurring losses.