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3 years ago

A quality control activity analysis indicated the following four activity costs of an administrative department:

Business

1 answer:

Doss [256]3 years ago

3 0

Answer:

total sales are the internal failure costs is 2%

Explanation:

given data

form to reduce errors = $15,000

customer complaints = 75,000

Verifying = 30,000

Correcting errors = 60,000

Total = $180,000

sales = $3,000,000

to find out

total sales are the internal failure costs

solution

we know here that internal failture cost is express as

internal failture cost = correcting error in form ...........1

internal failture cost = $60000

and

internal failture cost as % of total cost is here as

internal failture cost to sale = $\frac{internal\ failture\ cost}{sales}$ .......2

internal failture cost to sale = $\frac{60000}{3000000}$

internal failture cost to sale = 2%

so total sales are the internal failure costs is 2%

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1 year ago

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3 years ago

A new highway is to be constructed.

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Answer:

Desing B

<u><em>Total Present worth</em></u> $ 502.485,35‬

<u><em>Annual worth:</em></u> $ 49,722.003

Option 2:

<u><em>Total Present worth</em></u> $ 666.441,33‬

<u><em>Annual worth:</em></u> $ 53,845.798

Explanation:

<h2>Desing A</h2>

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$4 x 3 x 5280 = 63,360

$8000 x 4 = <u> 32,000 </u>

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Annual cost:

11,800 + 300 = 12,100

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$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

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time 16

rate 0.06

$12100 \times \frac{1-(1+0.06)^{-16} }{0.06} = PV\\$

PV $122,281.3328

<u><em>Present worth:</em></u>

total cost to construct 544,160‬ + maintenance $122,281.33 = 666.441,33

<u><em>Annual worth:</em></u>

$PV \div \frac{1-(1+r)^{-time} }{rate} = C\\$

PV 544,160

time 16

rate 0.06

$544160 \div \frac{1-(1+0.06)^{-16} }{0.06} = C\\$

C $ 53,845.798

<h2>Desing B</h2>

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paviment $40 x 5,280 = $ 211,200

sood ditched 2 per foot x 5,280 foot per mile x $1.40 = $ 12,038.4

pipe culvert 2,200 x 2 = 4,400

Total value to construct: 227.638,4‬

PV of maintenance:

replacement 2,400 x 2 = 4,800 (in 8 years)

$\frac{Maturity}{(1 + rate)^{time} } = PV$

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PV of this annuity over 16 years:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 18,672.00

time 16

rate 0.06

$18672 \times \frac{1-(1+0.06)^{-16} }{0.06} = PV\\$

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PV of the replacement bituminous concrete

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity $211,200.0000

time 16.00

rate 0.06000

$\frac{211200}{(1 + 0.06)^{16} } = PV$

PV 83,138.0951

<u><em>Present worth:</em></u>

Total value to construct: $ 227.638,4‬ +

yearly cost PB $ 188,697.28 +

concrete replacement $ 83,138.0951

culvert replacement: $<u> 3,011.58 </u>

Total Present worth 502.485,35‬

<u><em>Annual worth:</em></u>

$PV \div \frac{1-(1+r)^{-time} }{rate} = C\\$

$502485.35 \div \frac{1-(1+0.06)^{-16} }{0.06} = C\\$

C $ 49,722.003

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3 years ago