OPEARATIONS MANAG.REV CUSTOM 2017
OPEARATIONS MANAG.REV CUSTOM 2017
17th Edition
ISBN: 9781323590058
Author: Pearson
Publisher: PEARSON C
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Chapter 10, Problem 1CS
Summary Introduction

Case summary:

Person K is the vice-president of operations at Company J, which received a request for quote of supplying 400 units per week. Employee must be permitted to perform the task for 17 times. The actual times observed were given below:

Number Actual time (minutes)
1 2.05
2 1.92
3 2.01
4 1.89
5 1.77
6 1.8
7 1.86
8 1.83
9 1.93
10 1.96
11 1.95
12 2.05
13 1.79
14 1.82
15 1.85
16 1.85
17 1.99

Performance rating is 115%, fatigue allowance is given as 8%, personal allowance is 6%, and delay allowance is 2%. Workday hour is 7.5 hours and the operators would be paid $12.50 per hour for 8 hours.

To determine: The sample size for an accurate standard.

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3) Rane Brake Linings manufactures brake pads in a process focused facility; the fixed costs are nine thousand dollars per year, the variable cost is fifty dollars per brake pad, each brake pad sells for two hundred dollars.   a) Calculate the breakeven point (in units) for this operation. b) Calculate the breakeven point (in $) for this operation. c) Calculate the profit/loss on a demand of two hundred brake pads per year.   Note: You could work out the problem by hand or use excel; in chapter 5, section 5.11 of the Stevenson text, evaluating alternatives (cost volume analysis) is covered with examples; chapter 5 Stevenson lecture power point slides 34 to 44 (chapter 5 lecture: 29.49 mins to 38.87 mins) cover cost volume analysis with examples.
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