DreamInflate is a balloon manufacturing company. Balloon manufacturing consists of seven work stations, each performing a single step as indicated in the table below. There are five workers manned for the seven work stations as shown. Assume the workers are paid $15 per Worker Task Sequence Processing Time (secs/balloon) Task Dye production Electrocharging Dipping (Cold and Hot) Mortar Dipping Balloon inflation and delaltexing Vulcanization Inspection/Testing 1 30 w1 2 20 3 35 W2 4 25 W3 30 W4 45 W5 7 40 hour. Each balloon pack is sold for $6 and has a variable cost of $1. The company has fixed costs of $200 per hour. There is more demand than the overall production system can provide. Based on the information provided, answer the following questions: • What is the cost of direct labor for balloons? · How much profit does DreamInflate make every hour? (note that the cost of direct labor is also a variable cost). What would the profit of DreamInflate be if the variable costs were 10 percent lower?
DreamInflate is a balloon manufacturing company. Balloon manufacturing consists of seven work stations, each performing a single step as indicated in the table below. There are five workers manned for the seven work stations as shown. Assume the workers are paid $15 per Worker Task Sequence Processing Time (secs/balloon) Task Dye production Electrocharging Dipping (Cold and Hot) Mortar Dipping Balloon inflation and delaltexing Vulcanization Inspection/Testing 1 30 w1 2 20 3 35 W2 4 25 W3 30 W4 45 W5 7 40 hour. Each balloon pack is sold for $6 and has a variable cost of $1. The company has fixed costs of $200 per hour. There is more demand than the overall production system can provide. Based on the information provided, answer the following questions: • What is the cost of direct labor for balloons? · How much profit does DreamInflate make every hour? (note that the cost of direct labor is also a variable cost). What would the profit of DreamInflate be if the variable costs were 10 percent lower?
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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