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
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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
20
3
35
W2
25
W3
30
W4
6.
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?
Transcribed Image Text: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 20 3 35 W2 25 W3 30 W4 6. 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?
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