Question: solutions for both problems mentioned Question 2 A medical appliances manufacturing firm has been operating for the past 10 years, resulting in 85% efficiency; and
Question 2 A medical appliances manufacturing firm has been operating for the past 10 years, resulting in 85% efficiency; and produces a subassembly whose operations chart is given in Figure 2. Marketing department forecasts demand for this subassembly as 3,500 units per 8-hour shift. a) How many people will be needed to be hired or relocated if the company currently has 22 people doing this job? b) For the subassembly, the direct labor cost is $8.00 per hour labor rate. Last year's manufacturing costs are given below. What is the selling price of the subassembly? For the previous year: Direct labor cost: $950,000 Direct material cost: $2,850,000 Overhead cost: $1.900.000 Figure 2 Operations chart for a subassembly (times in hours)
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