Blackburn Manufacturing has the following data for one of its production departments:

Required:
1. Calculate MCE. Comment on its significance.
2. What is the theoretical cycle time? Calculate MCE using actual and theoretical cycle times.
3. What if waste is reduced by one-half? What is the new MCE? New cycle time?LO1

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Theoretical velocity: 75 units per hour Productive minutes available per year: 2,500,000 Annual conversion costs: $15,000,000 Actual velocity: 40 units per hour