Question: Jim Jones, an industrial engineer from Tech, has improved the manufacturability of an existingproduct at MKBK Manufacturing Inc. in Cookeville. The improvement has resulted in

Jim Jones, an industrial engineer from Tech, has improved the manufacturability of an existingproduct at MKBK Manufacturing Inc. in Cookeville. The improvement has resulted in a

10 %

reduction in processing time from

100

minutes to

90

minutes. However, the methodrequires an investment of $

5, 000 .

The product will be made at the rate of

4, 000

for thefirst year and will be increased at the rate of

500

for the next three years. To justify the$

5, 000

investment, determine how much the reduction in processing time per hour isworth in dollars. Ignore the time value ofmoney at this time.

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