B9 For the production of part R-193, two operations are being considered. The capital investment associated with eachoperation is identical.Operation 1 produces 1,400 parts per hour. After each hour, the tooling must be adjusted by the machine operator.This adjustment takes 20 minutes. The machine operator for Operation 1 is paid $17 per hour (this includes fringebenefits).Operation 2 produces 1,050 parts per hour, but the tooling needs to be adjusted by the operator only once every twohours. This adjustment takes 30 minutes. The machine operator for Operation 2 is paid $11 per hour (this includesfringe benefits)Assume an 8-hour workday. Further assume that all parts produced can be sold for $0.25 eacha. Should Operation 1 or Operation 2 be recommended?b. What is the basic tradeoff in this problem?SALa. The profit using Operation 1 is $ 1,964 per day (Round to the nearest dollar)The profit using Operation 2 is $ 1,592 per day (Round to the nearest dollar)Operation 1 should be chosen.b. Choose the correct answer belowAA higher production for Operation 2 is being traded off for a higher tool changing time (downtime)B. A higher production for Operation 2 is being traded off for a lower tool changing time (downtime).A higher production for Operation 1 is being traded off for a higher tool changing time (downtime)D. A higher production for Operation 1 is being traded off for a lower tool changing time (downtime)

Operation 1: Production per hr =1400 Adjustment time = 20 mins Labor cost per hr = 17 Selling price…

Answered: For the production of part R-193, two…

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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