Quick Note: 1. Before you start calculating, think about what happens to variable cost: the cost of scrapped units still needs to be accounted for in the variable cost of a good unit. It may be helpful to work it through in units. For example, if you start out to make 100 units at Step 1, how much did you spend in variable cost? How many good units did you yield? Then what is the cost per good unit? 2. The easiest way to do these calculations is in Excel. There is no need to round to whole cents at each step in your calculations, but round to nearest whole cent when you enter your final answer. Don't worry about accounting for whole units at the end of each step. Yields are usually not constant, so consider these calculations as providing some insights into costs \"on average.\" A process has three steps (tasks) with different yields and variable costs (labor and materials) at each step: fs VC added Actual cost 7 9 2? 5% 12 94% 10 96% Task 1 VC (variable cost) added at this step: $7.00 Yield: 95.00% Task 2 VC (variable cost) added at this step: $12.00 Yield: 94.00% Task 3 VC (variable cost) added at this step: $10.00 Yield: 96.00% Assume that units are inspected after each step in the process and that defective units are scrapped. PROCESS FLOW DIAGRAM: CORE ELEMENTS Create a Flow based on the case no start yes end Start and End Points Flows Tasks Decision Points WaitsQuestions Question 1 What is the yield for this process? Format percentages with two decimal places and with the percentage sign, e.g., 54.37% Question 2 What would the variable cost of a good unit be if yields at each step were 100%? List the value with a dollar sign and with both decimal places, e.g., $55.19 Question 3 What is the variable cost of a good unit at the end of the process at the current yields? List the value with a dollar sign and with both decimal places, e.g., $55.19 Question 4 What is the cost per unit of poor quality? List the value with a dollar sign and with both decimal places, e.g., $55.19 Question 5 What is the ratio of variable cost per unit at 100% yields to variable cost per unit at current yields? Format percentages with two decimal places and with the percentage sign, e.g., 54.37%