Question: Please help me with the problems marked incorrect. (C and E) PA 4-8 (Algo) Atlas Inc. is a toy bicycle manufacturing... Atlas Inc. is a

Please help me with the problems marked incorrect. (C and E)

Please help me with the problems marked

Please help me with the problems marked

PA 4-8 (Algo) Atlas Inc. is a toy bicycle manufacturing... Atlas Inc. 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 Inc. consists of seven work stations, each performing a single step. Stations and processing times are summarized here: Step 1 (35 sec.): The plastic tube for the frame is cut to size. Step 2 (25 sec.): The tube is put together. Step 3 (35 sec.): The frame is glued together Step 4 (30 sec.): The frame is cleaned. Step 5 (25 sec.): Paint is sprayed onto the frame. Step 6 (40 sec.): Wheels are assembled. Step 7 (35 sec.): All other parts are assembled 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 $6 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. Answer is complete but not entirely correct. Instructions: Do not round intermediate calculations. Round all answers to 2 decimal places. What is the cost of direct labor for the $ 1.35 per unit bicycle? a. b. How much profit does the company make per hour? $ 26.92 per hour c. What would be the profits per hour if Atlas would be able to source the parts 8 percent cheaper ($0.92 for the parts of one unit)? $ 56.60 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)? $ 47.92 per hour e. What would be the profit per hour if Atlas were able to reduce the processing time at the bottleneck by 3 seconds per unit (assume unlimited demand)? $ 50.00 per hour

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