Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need the solution for the problem below :) Two alternative designs are under consideration for a tapered fastening pin. The fastening pins are sold

I need the solution for the problem below :)

image text in transcribed
Two alternative designs are under consideration for a tapered fastening pin. The fastening pins are sold for $0.7m each. Either design will serve equallyr well and will nvolve the same material and manufacturing cost except for the lathe and drill operations. Design A will require E hours of lathe time and 4.5 hours of drill time per LOUD units. Design B will require 7' hours of lathe time and 12 hours of drill time per 1,000 units. The variable operating cost of the lathe, including labor, is $13.50 per hour. The variable operating cost of the drill, including labor, is $15.90 per hour. a. Which design should be adopted if 125,000 units are sold per year? b. What is the annual saving over the other design

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

Econometrics By Example

Authors: Damodar Gujarati

2nd Edition

1137375019, 9781137375018

More Books

Students also viewed these Economics questions

Question

The number of people commenting on the statement

Answered: 1 week ago

Question

Peoples understanding of what is being said

Answered: 1 week ago