Just solve the second picture, the first one was an error.

Atlas Inc. is a toy bicycle manufacturing company producing a five-inch small version of the bike that Lance Armstrong rode to win his first Tour de France. The assembly line at Atlas Inc. consists of seven work stations, each performing a single step. Stations and processing times are summarized here: Step 1 (30 sec.): The plastic tube for the frame is cut to size. . Step 2 (20 sec.): The tube is put together. Step 3 (35 sec.): The frame is glued together. Step 4 (25 sec.): The frame is cleaned. Step 5 (30 sec.): Paint is sprayed onto the frame. Step 6 (45 sec.): Wheels are assembled. Step 7 (40 sec.): All other parts are assembled to the frame. Under the current process layout, workers are allocated to the stations as shown here: Worker 1: Steps 1 and 2 Worker 2: Steps 3 and 4 Worker 3: Step 5 Worker 4: Step 6 . Worker 5: Step 7 Assume the workers are paid $15 per hour. Each bicycle is sold for $6 and includes parts that are sourced for $1. The company has fixed costs of $200 per hour. Despite Lance Armstrong's doping confession, there exists substantially more demand for the bicycle than Atlas can supply a. What is the cost of direct labor for the bicycle? A. $1.25 per unit B. $0.25 per unit C. $2.25 per unit D. $3.25 per unit b. How much profit does the company make per hour? A. $5 per hour B. $15 per hour C. $25 per hour D. $35 per hour c. What would be the profits per hour if Atlas would be able to source the parts 10 percent cheaper ($0.90 for the parts of one unit)? A. $31 per hour B. $26 per hour C. $11 per hour D. $29 per hour d. What would be the profits per hour if Atlas were able to reduce fixed costs by 10 percent (to $180 per hour)? A. $25 per hour B. $35 per hour C. $15 per hour D. $45 per hour e. What would be the profits per hour if Atlas were able to reduce the processing time at the bottleneck by 5 seconds per unit (assume unlimited demand)? A. $62.27 per hour B. $42.27 per hour C. $52.27 per hour p. $22.27 per hour Problem 1 Below are listed various costs that are found in organizations. Classify each cost as either variable or fixed with respect to the volume of goods or services produced and sold by the organization. Also classify each cost as a selling and administrative cost or a product cost. Prepare your answer sheet as shown below, placing an X in the appropriate column. Cost Behavior Variable Fixed Cost Item Selling and Administrative Cost Product Cost (1) The cost of turn signals used at GM plant. These are one of the parts installed in the steering columns assembled in the plant. (2) Interest expense on CBS'S long-term debt. (3) Salespersons' commissions at Avon Products (4) Insurance on one of Cincinnati Malacron's factory building. (5) The cost of shipping brass fittings from Gram Mfg. plant in New Hampshire to customers in California. (6) Depreciation on the bookshelves at Reston Bookstore. (7) The cost of X-ray film at the Mayo Clinic's radiology lab. (8) The cost of leasing an 800- telephone number at LL Bean. The monthly charge for the 800 number is independent of the number of calls taken. (9) The depreciation on the playground equipment at McDonald's outlet (10) The cost of mozzarella cheese used at Pizza Hut outlet