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(Click the loon to view data) Read the rearments Materials-procurement and inspection costs t Preventive maintenance of equipment u Breakdown maintenance of equipment CICO Gray
(Click the loon to view data) Read the rearments Materials-procurement and inspection costs t Preventive maintenance of equipment u Breakdown maintenance of equipment CICO Gray ares Gray area Non-value-added Requirement 2. For any cost classifed in the gray area, assume 24% in value-added and 70% is non-value-added. How much of the total of all seven costs is value-added and how much non-a Compute the total cost for the value-added and horivalue added costs, then compute what percentage of the total in value-added and how much is non-value-added Value-added Non-ve-added Total cost t Total percent of total costs Save Data table 12 - X a. Materials and labor for servicing machine tools $ 600,000 b. Rework costs 190,000 weer c. Expediting costs caused by work delays 70,000 d. Materials-handling costs 30,000 e. Materials-procurement and inspection costs 45,000 f. Preventive maintenance of equipment g. Breakdown maintenance of equipment 25,000 80,000 76% is Print Done non-value-added? Clear all Check answer Requirements Bed, no tools sts arav area 1. Classify each cost as value-added, non-value-added, or in the gray area between. For any cost classified in the gray area, assume 24% is value-added and 76% is non-value-added. How much of the total of all seven costs is value-added and how much is non-value-added? 3. Machi is considering the following changes: (a) introducing quality-improvement programs whose net effect will be to reduce rework and expediting costs by 50% and materials and labor costs for servicing machine tools by 5%; (b) working with suppliers to reduce materials-procurement and inspection costs by 10% and materials-handling costs by 20%; and (c) increasing preventive-maintenance costs by 50% to reduce breakdown-maintenance costs by 30%. Calculate the effect of programs (a), (b), and (c) on value-added costs, non-value-added costs, and total costs. Comment briefly. es Print Done - X tools $ 600,000 190,000 70,000 30,000 its 45,000 25,000 80,000 Clear all 73F non-value-added? Check answer 12:52 PM 200/2022
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