Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can someone please answer these questions? The Goodparts Company produces a component that is subsequently used in the aerospace industry. The component consists of three

can someone please answer these questions?
image text in transcribed
image text in transcribed
The Goodparts Company produces a component that is subsequently used in the aerospace industry. The component consists of three parts (A, B, and C) that are purchased from outside and cost 35, 30, and 10 cents per piece, respectively. Parts A and B are assembled first on assembly line 1, which produces 110 components per hour. Part C undergoes a drilling operation before being finally assembled with the output from assembly line 1 . There are, in total, six drilling machines, but at present only three of them are operational. Each drilling machine drills part C at a rate of 40 parts per hour, In the final assembly, the output from assembly line 1 is assembled with the drilled part C. The final assembly line produces at a rate of 130 components per hour. At present, components are produced eight hours a day and flve days a week. Management believes that if the need arises, it can add a second shift of eight hours for the assembly lines. The cost of assembly labor is 25 cents per part for each assembly line; the cost of drilling labor is 15 cents per part. For drilling, the cost of electricity is 1 cent per part. The total overhead cost has been calculated as $1,600 per week. The depreciation cost for equipment has been calculated as $30 per week. d-1, Determine the cost per unit output for part b. Note: Round your answer to 2 decimal places. d-2. Determine the cost per unit output for part c. Note: Round your answer to 2 decimal places. e. The product is 'sold at $4.00 per unit. Assume that the cost of a dilling machine (fixed cost) is $34,000 and the company produces 7,200 units per week. Assume that four drilling machines are used for production. If the company had an option to buy the same part at $3.00 per unit, what would be the break-even number of units? Note: In your calculations, use the two-digit cost per unit from part d-1. Round your answer to the nearest whole number

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Fundamentals Of Fashion Management

Authors: Susan Dillon

2nd Edition

1474271219, 978-1474271219

More Books

Students also viewed these General Management questions

Question

1. Organize and support your main points

Answered: 1 week ago

Question

3. Move smoothly from point to point

Answered: 1 week ago

Question

5. Develop a strong introduction, a crucial part of all speeches

Answered: 1 week ago