A production process consists of a three-step operation. The scrap rate is 10 pe
ID: 469485 • Letter: A
Question
A production process consists of a three-step operation. The scrap rate is 10 percent for the first step and 6 percent for the other two steps.
If the desired daily output is 450 units, how many units must be started to allow for loss due to scrap? (Do not round intermediate calculations. Round up your final answer to the next whole number.)
If the scrap rate for each step could be cut in half at every operation, how many units would this save in terms of the scrap allowance? (Do not round intermediate calculations. Round up your final answer to the next whole number.)
If the scrap represents a cost of $10 per unit, how much is it costing the company per day for the original scrap rate (i.e. the Part a scrap rate)? (Round your answer to the nearest whole number. Omit the "$" sign in your response.)
If the desired daily output is 450 units, how many units must be started to allow for loss due to scrap? (Do not round intermediate calculations. Round up your final answer to the next whole number.)
Explanation / Answer
A production process consists of a three-step operation. The scrap rate is 10 percent for the first step and 6 percent for the other two steps.
a.
If the desired daily output is 450 units, how many units must be started to allow for loss due to scrap? (Do not round intermediate calculations. Round up your final answer to the next whole number.)
step1
step2
step3
output
scrap rate
10%
6%
6%
Adding scrap %
556.182
505.62
477
450
Number of units
556
units
b.
If the scrap rate for each step could be cut in half at every operation, how many units would this save in terms of the scrap allowance? (Do not round intermediate calculations. Round up your final answer to the next whole number.)
scrap rate
5%
3%
3%
Adding scrap %
501.27525
477.405
463.5
450
Number of units needed
501
units
Number of units saved
55
units
(556-501)
c.
If the scrap represents a cost of $10 per unit, how much is it costing the company per day for the original scrap rate (i.e. the Part a scrap rate)? (Round your answer to the nearest whole number. Omit the "$" sign in your response.)
Out of 556 units, the company is getting an output of 450 units daily.
hence, no. of scrap units =
106
units
scrap cost /unit =
10
Cost
1062
A production process consists of a three-step operation. The scrap rate is 10 percent for the first step and 6 percent for the other two steps.
a.
If the desired daily output is 450 units, how many units must be started to allow for loss due to scrap? (Do not round intermediate calculations. Round up your final answer to the next whole number.)
step1
step2
step3
output
scrap rate
10%
6%
6%
Adding scrap %
556.182
505.62
477
450
Number of units
556
units
b.
If the scrap rate for each step could be cut in half at every operation, how many units would this save in terms of the scrap allowance? (Do not round intermediate calculations. Round up your final answer to the next whole number.)
scrap rate
5%
3%
3%
Adding scrap %
501.27525
477.405
463.5
450
Number of units needed
501
units
Number of units saved
55
units
(556-501)
c.
If the scrap represents a cost of $10 per unit, how much is it costing the company per day for the original scrap rate (i.e. the Part a scrap rate)? (Round your answer to the nearest whole number. Omit the "$" sign in your response.)
Out of 556 units, the company is getting an output of 450 units daily.
hence, no. of scrap units =
106
units
scrap cost /unit =
10
Cost
1062
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