=+2 Highspin Ltd is considering introducing a new product, RAM. It expects it will receive 25 orders

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=+2 Highspin Ltd is considering introducing a new product, RAM. It expects it will receive 25 orders of RAM (each order for 200 units)

in the coming year. Each order of RAM will take 20 hours of machine time. The average demand for IGON will be unaffected by the introduction of RAM. Calculate:

(a) the average waiting time for an order received and

(b) the average manufacturing lead time per order for each product, if Highspin Ltd introduces RAM.

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Cost Accounting A Managerial Emphasis

ISBN: 9781442563377

2nd Edition

Authors: Monte Wynder, Madhav V. Rajan, Srikant M. Datar, Charles T. Horngren, William Maguire, Rebecca Tan

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