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Harrizon [31]
3 years ago
13

"A company currently using an inspection process in its material receiving department is trying to install an overall cost reduc

tion program. One possible reduction is the elimination of one inspection position. This position tests items for which the probability of a material defect averages 0.04. By inspecting all items, the inspector is able to remove all defects. The inspector can inspect 53 units per hour. The hourly rate including fringe benefits for this position is $10. If the inspection position is eliminated, defects will go into product assembly and will have to be replaced later at a cost of $11 each when they are detected in final product testing. Assume that the line will operate at the same rate (i.e., the inspection rate) if the inspection operation was eliminated. a-1. If the inspector position is eliminated, what will the hourly cost of defects be? (Round your answer to 2 decimal places.)"
Business
1 answer:
Bogdan [553]3 years ago
4 0

Answer:

$23.32

Explanation:

We have the given information as below:

Defective content average = 0.04

Number of units inspected per hour = 53

Hourly rate = $10

Cost involved in final product testing = $11

Now to determine if the inspector position is eliminated, we will need to calculate the number of defective products:

defective products = Defective content average × Number of units inspected per hour

defective products = 0.04 × 53 = 2.12

the hourly cost of defects = defective products × Cost involved in final product testing

The hourly cost of defects = 2.12 × $11 = $23.32

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Jillian runs a small printing business. She spends $2000 / month on ink, $30,000 a year on rent for the building, and $60,000 a
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Answer:

Jillian's annual economic profit on the printing business is $6,000

Explanation:

Cost of ink = $2000/month = $2000×12/year = $24,000/year

Annual rent = $30,000

Annual salary of employees = $60,000

Total annual expenditure = $24,000 + $30,000 + $60,000 = $114,000

Annual revenue = $120,000

Annual economic profit = annual revenue - annual expenditure = $120,000 - $114,000 = $6,000

8 0
3 years ago
A company would like to evaluate two incentive schemes that take effect once the worker exceeds standard performance. In the fir
Lerok [7]

Answer:

B) plan 1 : worker earning  y = x - 0.14  ,  unit labor = \frac{x-(0.14)}{x}

   plan 2 : worker earning y  = 0.5x + 0.5, unit labor = (0.5x + 0.5) / x

C) At 128%

D ) plan D IS PREFERABLE

Explanation:

In the first case Benefits are split : 30% to worker , 70% to company ( up to 120% ) performance

In the second case benefits 50% go to the worker and 50% go the company

B) The equations for worker earnings and normalized unit labor costs for each scheme

Plan 1 :

y  ( percentage earning of worker ) = 1

unit labor cost = Y / 1

y = 0 - 30

unit labor = 0.3 / x

y = x - 0.14  therefore unit labor = \frac{x-(0.14)}{x}

plan 2 :

y  ( percentage earning of worker ) = 1,   y  = 0.5x + 0.5

unit labor cost :  Y / 1  =  (0.5x + 0.5) / x

C )  The point at which the two plans break even

0.5x + 0.5 = x - 0.14

0.5 + 0.14 = x - 0.5x

0.64 = x(1 - 0.5 )

x = 0.64 / 0.5 =  1.28 = 128%

D) The company would prefer plan 1

5 0
3 years ago
Several company users are frequently forgetting passwords for their mobile devices and applications. Which of the following shou
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Answer:

The correct answer is A. Implement single sign-on.

Explanation:

The single sign-on (SSO), is the working method by which workers gain access to different business applications through a registration procedure. For example, when you log in from your computer, you connect directly to all the computer software. There are two ways of single sign-on:

  1. Basic SSO
  2. Federated SSO

With the basic SSO, the password is saved in a "vault", a type of virtual security. This storage usually occurs in the cloud. Then, that vault password is retrieved for all applications that must log in later.

Federated SSO is a more advanced form of single sign-on. In this case, the password data is not stored or transmitted. First, they become tokens. Therefore, another code is created and the original password is not known by any other system.

4 0
2 years ago
Admirable Inc. makes three products in a single facility. Data concerning these products follow: Product A B C Selling price per
Fiesta28 [93]

Answer:

Product A $3.43

Product B $8.32

Product C $6.62

Explanation:

Calculation to determine How much of each product should be produced to maximize net operating income

Product A Product B Product C

Selling price per unit $72.70 $77.10 $76.10

Direct materials $33.10 $40.60 $46.40

Direct labor $22.00 $13.10 $7.20

Variable manufacturing overhead $4.60 $4.40 $3.30

Variable selling cost per unit $1.60 $3.20 $2.00

Total variable cost per unit $61.3 $61.3 $58.9

Contribution margin per unit $9.6 $15.8 $17.2

Product A ($72.70-$61.3=$9.6)

Product B ($77.10-$61.3=$15.8)

Product C ($76.10-$58.9=$17.2)

Mixing minutes per unit 2.8 1.9 2.6

Contribution margin per unit $3.43 $8.32 $6.62

Rank in terms of profitability 3 1 2

Product A ($9.6/2.8=$3.43)

Product B ($15.8/1.9=$8.32)

Product C ($17.2/2.6=$6.62)

Therefore How much of each product should be produced to maximize net operating income will be:

Product A $3.43

Product B $8.32

Product C $6.62

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3 years ago
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