2. A certain product is being made by hand in a small factory. The workers were paid P0.20 per acceptable piece produced. It was found that if a worker produce 80 pieces per day 5%, would be rejected. If 90 pieces were produced per day, 10% would be rejected, and a rate of 100 pieces per day, 20% would be rejected. The cost for materials was 0.50 per piece and the materials in any rejected products had to be thrown away. There was a fixed overhead expense of P10.00 per day per worker, regardless of considerable change in output. A. At which of the 3 outputs did the workers made the highest wages? B. At which output did the factory achieve the lowest unit cost?

2. A certain product is being made by hand in a small factory. The workers were paid P0.20 per acceptable piece produced. It was found that if a worker produce 80 pieces per day 5%, would be rejected. If 90 pieces were produced per day, 10% would be rejected, and a rate of 100 pieces per day, 20% would be rejected. The cost for materials was 0.50 per piece and the materials in any rejected products had to be thrown away. There was a fixed overhead expense of P10.00 per day per worker, regardless of considerable change in output. A. At which of the 3 outputs did the workers made the highest wages? B. At which output did the factory achieve the lowest unit cost?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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