Answer:
a. Value added time = Cutting time + Sewing time
Value added time = 5 minutes + 20 minutes
Value added time = 25 minutes
Non-value added time = Total within batch wait time + Move time
Non-value added time = [25 minutes * (40 - 1) + 2 minutes
Non-value added time = 977 minutes
Total lead time = Value added time + Non-value added time
Total lead time = 25 minutes + 977 minutes
Total lead time = 1,002 minutes
b. Value added ratio = Value added time / Total lead time
Value added ratio = 25 minutes / 1,002 minutes
Value added ratio = 0.02495
Value added ratio = 2.5%
The rest of your question:
unavoidable fixed overhead cost. What are the relevant costs for this decision? Based only these costs, which option should the company <span>choose?
The answer:
Relevant cost to make and Buy.</span>
<u>Answer</u>:
Incomplete question. However, I inferred you want to know more about the Five forces Model created by Michael E. Porter and about the conducting entrepreneurial feasibility study.
<u>Explanation</u>:
Note that the main focus of Poter's model is to help someone analysing a market know how much competition will exist in and the chances of realizing a profit. The five forces to be analyzed are:
- The threat of substitutes,
- the threat of new entrants,
- competitive rivalry
- bargaining power of buyers and
- bargaining power of customers.
Thus, conducting an entrepreneurial feasibility study would involve a careful cross-examination of the factors mentioned above.
The major purpose of test marketing is to provide management with information : Whether to launch the new product.
<h3>What is test marketing?</h3>
Test marketing refers to the few introduction of a product and a marketing program to determine the reactions of potential customers in a market situation.
The objective of test marketing is to find the limitations and strengths of the product based on customers' reactions. It also help to structure the marketing strategy of that product
Hence, the major purpose of test marketing is to provide management with information whether to launch the new product.
Learn more about test marketing here : brainly.com/question/7200804
Answer: The answer is given below
Explanation:
The schedule showing the amount recorded goes thus:
Particulars Amount($)
Purchase price 697000
Freight costs 33500
Electrical connection 4700
labor costs 36300
Bread dough used in testing oven
870
Safety Guards 1470
Total cost of equipment = 773840
The repairs cost 4700 is excluded because it is not a normal cost of the installation, therefore, it should be recorded as an expense in the income statement.
