Vizzini Company produces an automotive part. The part consists of three purchased raw materials (A, B, and C) that cost $0.40, $0.35, and $0.15 cents per unit, respectively. Parts A and B are assembled first on assembly line 1, which produces 140 sub-assemblies (A and B combined) 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 50 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 160 components per hour. At present, all production takes place over eight hours a day and five days a week. Management believes that if need arises, it can add a second shift of eight hours for the assembly lines.

The cost of assembly labor is 30 cents per part for each assembly line; the cost of drilling labor is 15 cents per part. For drilling, the cost of electricity is one cent per part. The total overhead cost has been calculated as $1,200 per week. The depreciation cost for equipment has been calculated as $30 per week.

a. Determine the process capacity (number of components produced per week) of the entire process.

b-1. Suppose a second shift of eight hours is run for assembly line 1 and the same is done for the final assembly line. In addition, four of the six drilling machines are made operational. The drilling machines, however, operate for just eight hours a day. What is the new process capacity (number of final assembled components produced per week)?

b-2. Which of the three operations limits the capacity?

c-1. Management decides to run a second shift of eight hours for assembly line 1 plus a second shift of only four hours for the final assembly line. Five of the six drilling machines operate for eight hours a day. What is the new capacity (number of final assembled components produced per week)?

c-2. Which of the three operations limits the capacity?

d-1. Determine the cost per unit output for the situation described in question b-1 above. Round your answer to 2 decimal places.

d-2. Determine the cost per unit output for the situation described in question c-1 above. Round your answer to 2 decimal places.