Activity: 1. A certain part is being welded by hand. It takes 5 minutes to weld one part. A jig is being proposed. With the jig, the welding time per part is reduced by 2 minutes. The welder receives P2.00 per hour and the rate for the welding unit is P1.00 per hour. The jig will cost P4,000 with 10 years lifespan without salvage value. It will be used 8 hours/day, 250 days a year. The annual maintenance is P250 per year. If interest is 8% a year, how many parts per day must be welded to pay itself in welding time saved? 2. A factory can produce a capacity of 500,000 units annually of a certain product which can be sold P1.75 each. If the factory only produces 70% of its capacity with a material cost of P300,000 and annual fixed costs of P150,000; a. What is the cost per unit at breakeven point? b. What is the net profit?
Activity: 1. A certain part is being welded by hand. It takes 5 minutes to weld one part. A jig is being proposed. With the jig, the welding time per part is reduced by 2 minutes. The welder receives P2.00 per hour and the rate for the welding unit is P1.00 per hour. The jig will cost P4,000 with 10 years lifespan without salvage value. It will be used 8 hours/day, 250 days a year. The annual maintenance is P250 per year. If interest is 8% a year, how many parts per day must be welded to pay itself in welding time saved? 2. A factory can produce a capacity of 500,000 units annually of a certain product which can be sold P1.75 each. If the factory only produces 70% of its capacity with a material cost of P300,000 and annual fixed costs of P150,000; a. What is the cost per unit at breakeven point? b. What is the net profit?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Lab 6: Comparison Shopping
Background: A student group at Cal Poly carried out a study to compare the prices at two
different local grocery stores. The inventory list for Scolari's (a privately-owned local store)
was broken into 30 sheets, each sheet showing 30 items. A number between 01 and 30
was randomly generated, which turned out to be 17, so the students selected the 17th item
on each inventory sheet. Students then obtained the price of those items at both Scolari's
and Lucky's, which advertised itself as a discount grocery store, within a two-day period. If
the exact item was not available at both stores, the item was adjusted slightly (size or brand
name) so that the identical item could be priced at both stores. The students gathered
prices for a total of 29 items.
Goals: In this lab you will compare the prices of products at two different grocery stores.
You will apply tools you have learned to analyze paired data, and you will explore a
simulation procedure for paired data that switches the order of the observations in each pair
at random. This provides an alternative to the paired t-test and helps to make clear the
concepts behind analyzing paired data.
slics
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Lab Report: Click here to download the Word file for saving your output.
When you are ready, click Start to begin.
Transcribed Image Text:Activity:
1. A certain part is being welded by hand. It takes 5 minutes to weld one part.
A jig is being proposed. With the jig, the welding time per part is reduced by
2 minutes. The welder reccives P2.00 per hour and the rate for the welding
unit is P1.00 per hour. The jig will cost P4,000 with 10 years lifespan
without salvage valuc. It will be used 8 hours/day, 250 days a year. The
annual maintenance is P250 per year. If interest is 8% a year, how many
parts per day must be welded to pay itself in welding time saved?
2. A factory can produce a capacity of 500,000 units annually of a certain
product which can be sold P1.75 cach. If the factory only produces 70% of
its capacity with a material cost of P300,000 and annual fixed costs of
P150,0003;
a. What is the cost per unit at breakeven point?
b. What is the net profit?
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Step 1: Introduction
VIEWStep 2: Compute & evaluate costs and savings associated with using the jig
VIEWStep 3: Calculate the total annual savings & cost of using the jig
VIEWStep 4: Calculate the number of parts per day needed to cover the annual cost of the jig
VIEWStep 5: Compute BreakEven
VIEWStep 6: Compute Net Profit
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