A company produces two products in one of its plants: A and B. Annual production
ID: 3663990 • Letter: A
Question
A company produces two products in one of its plants: A and B. Annual production of Product A is 3,600 units and of product B is 2,500 units. Product A has 47 components and product B has 52 components. For product A, 40% of the cpmponents are made in the plant, while 60% are purchased parts. For Product B, 30% of the compenents are made in the plant, while 70% are purchesed. For theses two products taken together, what is the total number of (a) components made in the plant and (b) components purchesed?
Explanation / Answer
Product A units - 3600
Product B units - 2500
Components in A in each unit = 47
Total components in A = 3600 * 47 = 169200
Components in B in each unit = 52
Total components in B = 2500 * 52 = 130000
Now for component A 40% are made in plant and 60% are purchased.
components of A made in plant = 0.4 * 169200 = 67680
components of A which are purchased = 0.6 * 169200 = 101520
components of B which are made in plant = 0.3 * 130000= 39000
components of B which are purchased = 0.7 * 130000 = 91000
Total components made in plant = 39000 + 67680 = 106680 --(a)
Total components purchased = 91000 + 101520 = 192520 --(b)
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