Question: Need help on part (e) PA 4-6 Atlas Inc. is a toy bicycle manufacturing... Atlas Inc. is a toy bicyde manufacturing company producing a five-inch

Need help on part (e)Need help on part (e) PA 4-6 Atlas Inc. is a toy

PA 4-6 Atlas Inc. is a toy bicycle manufacturing... Atlas Inc. is a toy bicyde manufacturing company producing a five-inch small version of the bike that Lance Armstrong rode to win his first Tour de France. The assemblyline at Atlas Inc. consists of seven work stations, each performing a single step. Stations and processing times are summarized here: Step 1 (30 sec.): The plastic tube for the frame is cut to size. Step 2 (20 sec.): The tube is put together. Step 3 (30 sec.): The frame is glued together Step 4 (20 sec.): The frame is cleaned. Step 5 (25 sec.): Paint is sprayed onto the frame. Step 6 (45 sec.): Wheels are assembled. Step 7 (35 sec.): All other parts are assembled the frame. Under the current process layout, workers are allocated to the stations as shown here: Worker 1: Steps 1, 2 Worker 2: Steps 3, 4 - Worker 3: Step 5 . Worker 4: Step 8 - Worker 5: Step 7 Assume the workers are paid $10 per hour. Each bicyde is sold for $5 and includes parts that are sourced for $1.25. The company has fixed costs of $225 per hour. Despite Lance Armstrong's doping confession, there exists substantially more demand for the biode than Atlas can supply. Instructions: Carry at least 4 decimal places in all intermediate calculations and values. Round (only) your final answers to 2 decimal places. Negative amounts should be indicated by a minus sign. What is the cost of direct labor for the bicycle? 0.69 per unit b. How much profit does the company make per hour? S (5.00) per hour What would be the profits per hour if Atlas would be able to source the parts 9% C. cheaper (51.14 for the parts of one unit, but the fixed costs and productivity will remain same as before)? S 2.92 per hour What would be the profits per hour if Atlas d. would be able to reduce fixed costs by 10% S (to $202.50 per hour)? 17.50 per hour What would be the profits per hour if Atlas would be able to reduce the processing time at the bottleneck by 5 seconds per e. unit (assume unlimited demand, note that reducing the processing time may cause the bottleneck to shift to a different process or create multiple, identical bottlenecks)? S 35.00 per hour

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