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A production process consists of a three - step operation. The scrap rate is 1 4 percent for the first step and 9 percent for
A production process consists of a threestep operation. The scrap rate is percent for the first step and percent for the other two steps.
a If the desired daily output is units, how many units must be started to allow for loss due to scrap? Do not round intermediate calculations. Round up your final answer to the next whole number.
b If the scrap rate for each step could be cut in half at every operation, how many units would this save in terms of the scrap allowance? Do not round intermediate calculations. Round up your final answer to the next whole number.
c If the scrap represents a cost of $ per unit, how much is it costing the company per day for the original scrap rate ie the Part a scrap rateRound your final answer to the nearest whole number.
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