Question: 2. [5 points] Within the last month, the raw material price and consumable price combined has increased by 5%. Meanwhile, the tooling cost per production

2. [5 points] Within the last month, the raw

2. [5 points] Within the last month, the raw material price and consumable price combined has increased by 5%. Meanwhile, the tooling cost per production batch also increases from $405 to $413 unfortunately. If the production throughput was 7 parts/hour, estimate the required new throughput (in parts/hour) to hold the production cost constant. Consider scrap rate to be 15%, materials and consumables for each product cost $210, capital equipment costs $500,000 to be written off in 5 years with an average machine utilization of 65% over 24 hr/day, and gross overhead rate (including labor, energy, information, space, administration, and all other time- rate affected costs) is $320/hr. 2. [5 points] Within the last month, the raw material price and consumable price combined has increased by 5%. Meanwhile, the tooling cost per production batch also increases from $405 to $413 unfortunately. If the production throughput was 7 parts/hour, estimate the required new throughput (in parts/hour) to hold the production cost constant. Consider scrap rate to be 15%, materials and consumables for each product cost $210, capital equipment costs $500,000 to be written off in 5 years with an average machine utilization of 65% over 24 hr/day, and gross overhead rate (including labor, energy, information, space, administration, and all other time- rate affected costs) is $320/hr

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!