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You are the foreperson for a processing plant which produces Vidalia onion relish. The relish is produced in an assembly line plant with stations with

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You are the foreperson for a processing plant which produces Vidalia onion relish. The relish is produced in an assembly line plant with stations with the following characteristics: Station Receiving Sorting Chopping Mixing Bottling Boxing/Shipping Administration Min Crew Station Capacity Max Crew Wage Rate Labor Standard 5,000 lbs/hr $8.00/hr 1,500 lbs/hr 6,000 7.50 1,000 6,000 8.00 3,000 5,000 8.50 1,500 5,000 9.50 2,500 9,000 7.00 1,500 2 20.00 - Utilities at the plant run $50/hour regardless of line speed. (40) 1. Construct the total operating cost curve for this plant using the economic engineering approach outlined in class. Report the costs in a table and on a graph (it does not need to be perfectly to scale) for quantities from 0 to 5,000 lbs/hour. (20) 2. Using your answer to problem 1, calculate the optimal quantity per hour at which to operate your plant if you are given an order for 75,000 lbs that must be filled in one week. Assume that overtime and doubleshifting are impossible, so that the maximum hours of operation are 40. (20) 3. Assume that the relish plant is operating at q = 3,500 lbs/hr. Calculate the average variable cost per hour (AOCH) and the average operating cost per pound (AOCIL)

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