Problem 3
A company makes customer shoes using designs that customers create. There are a set of quality
standards for the final product, such as even sewing lines in the sole, proper length of the tongue, correct
location of lace holes, etc. Each shoe is inspected after being sewn. Shoes that meet the standards are
sold directly to the customer. Shoes with defects are repaired, changed from the original customer's design
and then sold in alternate channels. The company profits $36 for a defect free pair and $10 for a remade
pair.
This last week, 546 pairs of shoes in total were produced by 5 workers.
The workers put in 8 hours per day, 5 days a week, minus a 2 hour staff meeting each week.
5% of the pairs were defective.
Assuming that all employees work at about the same rate, what is the number of shoes made
per hour by one of the workers? (including defect free and defective)
How much profit does the company make from one person's work hour?
On average, how many minutes of labor are used to make a pair of shoes?