Question: A production process consists of a three - step operation. The scrap rate is 1 0 percent for the first step and 8 percent for
A production process consists of a threestep operation. The scrap rate is percent for the first step and
percent for the other two steps.
a If the desired daily output is units, how many units must be started to allow for loss due to scrap?
Note: Do not round intermediate calculations. Round up your final answer to the next whole
number.
Number of units
b If the scrap rate for each step could be cut in half at every operation, how many units would this save in
terms of the scrap allowance?
Note: Do not round intermediate calculations. Round up your final answer to the next whole
number.
Number of units
c If the scrap represents a cost of $ per unit, how much is it costing the company per day for the
original scrap rate ie the Part a scrap rate
Note: Round your final answer to the nearest whole number.
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