Question: Process for a Five-Task Line Consider a five-task process, with five manual tasks to be performed before the product is completed, as diagrammed below: The
-
Process for a Five-Task Line
Consider a five-task process, with five manual tasks to be performed before the product is completed, as diagrammed below:

The task times, shown in minutes, are the times that it takes one worker to perform that task for one unit of product. This line is staffed with six workers, two of whom are assigned to workstation D. Assume that each of the tasks (tasks A through E) are never split among multiple workers. Thus, the two workers doing task d work on individual units, each doing all of task D on the particular unit on which he or she is working. Assume that there is ample equipment so that all workers can perform their tasks.
Refer to the Process Diagram for a Five-Task Line. Assume that there are only two costs: each worker receives wages of $10 per hour, and material cost is $15 per unit. Every unit produced generates $36 in revenue. Assume that every unit produced can be sold and that production is steady. What is the contribution (revenue - costs) per unit?
a. $2.00
b. $3.00
c. $6.00
d. $9.00
e. None of the answers are correct.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
