Q1: A plastic injection mould for a milk crate cost $100 000. The crate weighs 600g and the plastic is worth $3 per kg. The total production cost of the molding operation is $30 per hour. They sell to the dairy cooperative for $4 each. If the cycle time is 20 seconds, find: (a) The number of crates made in an hour. b) The production cost for each crate. c) The break-even point for the amortization of the tooling

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Q1: A plastic injection mould for a milk crate cost $100 000. The crate weighs 600g
and the plastic is worth $3 per kg. The total production cost of the molding operation
is $30 per hour. They sell to the dairy cooperative for $4 each. If the cycle time is 20
seconds, find:
(a) The number of crates made in an hour.
b) The production cost for each crate.
c) The break-even point for the amortization of the tooling
Transcribed Image Text:Q1: A plastic injection mould for a milk crate cost $100 000. The crate weighs 600g and the plastic is worth $3 per kg. The total production cost of the molding operation is $30 per hour. They sell to the dairy cooperative for $4 each. If the cycle time is 20 seconds, find: (a) The number of crates made in an hour. b) The production cost for each crate. c) The break-even point for the amortization of the tooling
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