H6. 18. Question Content Area Aquamarine Company sells one of its products, Product X, for $50 each. Sales volume averages 5,000 units per year. Recently, its main competitor reduced the price of its product to $30. Aquamarine expects sales to drop dramatically unless it matches the price offered by its competitor. In addition, the current profit per unit must be maintained. Information about Product X (for production of 5,000 units) follows: Standard QuantityActual QuantityActual CostMaterials (pounds)8,50010,00025,000Labor (hours)2,0002,50012,000Setups (hours)02,0004,000Material handling (moves)01,0002,500Warranties (number repaired)05008,000 The non-value-added cost per unit is (Round answer to two decimal places.): a. $3.17. b. $4.50. c. $4.13. d. $3.80.
H6.
18.
Question Content Area
Aquamarine Company sells one of its products, Product X, for $50 each. Sales volume averages 5,000 units per year. Recently, its main competitor reduced the price of its product to $30. Aquamarine expects sales to drop dramatically unless it matches the price offered by its competitor. In addition, the current profit per unit must be maintained. Information about Product X (for production of 5,000 units) follows:
Standard QuantityActual QuantityActual CostMaterials (pounds)8,50010,00025,000Labor (hours)2,0002,50012,000Setups (hours)02,0004,000Material handling (moves)01,0002,500Warranties (number repaired)05008,000
The non-value-added cost per unit is (Round answer to two decimal places.):
a. $3.17.
b. $4.50.
c. $4.13.
d. $3.80.
24.
Question Content Area
Phillips Screw Company produces screw fittings. It is determined that T = 1 inch in diameter. Specification limits allow a variation of plus or minus 0.5 inches. Products produced at values beyond the specification limits lose $15. A sample of five units produced showed the following values:
Unit NumberActual Diameter (Y)Unit 11.2Unit 21.3Unit 30.8Unit 40.9Unit 51.0
What is the average loss per unit?
a. $2.61
b. $12.00
c. $10.80
d. $2.16
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