Your position is that of an Operations Analyst. You will be asked to make several calculations and
Question:
Your position is that of an Operations Analyst. You will be asked to make several calculations and solve problems for this product line. Your skills will be gained through the material in this course. Product Information: There are two production lines. Production Line 1: Capacity is 3,000 Spinners per 8 hour day. The company operates 250 days per year. Input Amount of Input Cost Labor 6 laborers working 8 hours per day $15 per hour + 30% for costs and benefits Plastic 0.35 pounds of plastic per spinner $0.38 per pound Bearing 1 per spinner $0.12 each Production Line 2: Capacity is 5,000 Spinners per 8 hour day. The company operates 250 days per year. Input Amount of Input Cost Labor 5 laborers working 8 hours per day $15 per hour + 30% for costs and benefits Plastic 0.30 pounds of plastic per spinner $0.38 per pound Bearing 1 per spinner $0.12 each Other Costs: Management Costs are $480,000 per year. Other fixed costs are $360,000 per year. This is the capital costs of the equipment, the building, repair and maintenance.
1.From the information given Calculate the Labor cost per spinner in Production Line 2.
2.What is the total variable cost (Labor +Plastic+Bearing) for each spinner produced on Production line 1?
3.What is the total variable cost (Labor +Plastic+Bearing) for each spinner produced on Production line 2?
Business and Administrative Communication
ISBN: 978-0073403182
10th edition
Authors: Kitty o. locker, Donna s. kienzler