The facilities group wants to install a battery-powered warehouse monitoring system. A normal set of batteries costs $ 150, runs three hours before recharging and can be recharged 500 times. The long- life batteries cost twice as much, run five hours before recharging, and can be recharged 500 times. Which set of batteries should they buy? The normal battery The long-life battery They are both the same I need more information

The facilities group wants to install a battery-powered warehouse monitoring system. A normal set of batteries costs $ 150, runs three hours before recharging and can be recharged 500 times. The long- life batteries cost twice as much, run five hours before recharging, and can be recharged 500 times. Which set of batteries should they buy? The normal battery The long-life battery They are both the same I need more information

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Consider a drill press containing three drill bits. The current policy (called individual replacement) is to replace a drill bit when it fails. The firm is considering changing to a block replacement policy in which all three drillbits are replaced whenever a single drill bit fails. Each time the drill press is shut down, the cost is $100. A drill bit costs $50, and the variable cost of replacing a drill bit is $10. Assume that the time to replace a drill bit isnegligible. Also, assume that the time until failure for a drill bit follows an exponential distribution with a mean of 100 hours. This can be modeled in @RISK with the formula 5RISKEXPON (100). (Note: If you have the academic version of @RISK, this problem will require more RISKEXPON functions than the 100 allowed, but there is an easy workaround. An exponentially distributed random variable can be generated with Excel functions only using the formula =-Mean*LN(RAND()). Then @RISK can still be used to run the simulation.)…
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Can someone help me with part B of this problem?: Verasource Microprocessor Corporation sells 200 computer chips a month for $1,500 each. variable costs are $1,500,000. Fixed costs are $500,000. there's a defect rate of 8%. What is the hidden cost to the company of making this rate of defectives instead of 2,000 good chips each month? Suppose a six sigma effort can reduce the defects to a six sigma level. what is the impact on profitability?
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