lent $4($i$)$

Submitted

$\frac{0\mathrm{.}9}{3}$

Total points awardec

Atlas Incorporated is a toy bicycle manufacturing company producing a five$-$inch small version of the bike that Lance Armstrong rode to win his first Tour de France. The assembly line at Atlas Incorporated consists of seven work stations, each performing a single step. Stations and processing times are summarized here:

Step $1(30$ seconds$)$: The plastic tube for the frame is cut to size.

Step $2(20$ seconds$)$: The tube is put together.

Step $3(35$ seconds$)$: The frame is glued together

Step $4(20$ seconds$)$: The frame is cleaned.

Step $5(25$ seconds$)$: Paint is sprayed onto the frame.

Step $6(50$ seconds$)$: Wheels are assembled.

Step $7(35$ seconds$)$: All other parts are nbled to the frame.

Under the current process layout, workers are allocated to the stations as shown here:

Worker $1$: Steps $1$ and $2$

Worker $2$: Steps $3$ and $4$

Worker $3$: Step $5$

Worker $4$: Step $6$

Worker $5$: Step $7$

Assume the workers are paid $$15$ per hour. Each bicycle is sold for $$5$ and includes parts that are sourced for $$1.$ The company has fixed costs of $$175$ per hour. Despite Lance Armstrong's doping confession, there exists substantially more demand for the bicycle than Atlas can supply.

Note: Do not round intermediate calculations Round all answers to $2$ decimal places. Negative values should be indicated$/$inputted with a minus sign.

a$.$ What is the cost of direct labor for the bicycle?

Cost of direct labor

$$,1\mathrm{.}09$

per unit

$0\mathrm{.}9/3$ Total points awarded

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b$.$ How much profit does the company make per hour?

$\backslash$table$[[$Profit $,$$$,14\mathrm{.}00ox,$per hour$]]$

c$.$ What would be the profits per hour if Atlas would be able to source the parts $11$ percent cheaper $($ $$0\mathrm{.}89$ for the parts of one unit$)?$

$\backslash$table$[[$Profit $,$$$,25\mathrm{.}00ox,$per hour$]]$

d$.$ What would be the profits per hour if Atlas were able to reduce fixed costs by $12$ percent $($to $$154$ per hour$)?$

Profit

$

$45\mathrm{.}00$

per hour

e$.$ What would be the profit per hour if Atlas were able to reduce the processing time at the bottleneck by $4$ seconds per unit $($assume unlimited demand$)?$

Profit

$

$60\mathrm{.}00$

per hour