Company produces small motors at a production cost

Assignment Help Operation Management

Reference no: EM131417150

The H&S Motor Company produces small motors at a production cost of $30 per unit. Defective motors can be reworked at a cost of $12 each. The company produces 100 motors per day and averages 80 percent good-quality motors. Based on past experience, 50% of the defective motors can be reworked prior to shipping to customers. A good motor can be sold for $100 while a defective motor can be scrapped and sold for $15. Income consists of both the revenue from the sold motors and the scrapped motors.

A) Using the number of good motors shipped as the measure of output and the cost of production as the input, what is the company’s productivity if no defective motors are reworked?

B) Suppose that the company now uses the total income as the output measure. What is the company’s productivity if no defective motors are reworked?

C) Now suppose the company reworks the defective motors that can be reworked. Using the number of good motors shipped as the measure of output and the cost of production as the input, what is the company’s productivity now?

D) What is the percent change in productivity comparing the productivity in c) to the productivity in a).

Reference no: EM131417150

Questions Cloud

Develop a formal analysis of a work of art : In order to learn some of the basic skills necessary to research and develop a formal analysis of a work of art, you will write 2 Compare/Contrast essays> Each essay will compare two works of art found in the textbook.

What were queen isabellas instructions to columbus : FYI, Columbus, the priest Bartolome de las Casas and several others who participated in the expedition to Hispaniola wrote accounts of what happened during Spain's colonization of the Taino indians, the native people of this part of the Caribbean.

Would a random sample of 100 students be large : Would a random sample of 100 students be large enough to provide convincing evidence that the quarter system is favored? Explain.

State of residence is a right-to-work state : Go to the following website: http://www.nrtw.org/rtws.htm. Determine if your state of residence is a Right-to-Work state. Right-to-Work is a product of the Open-Shop Movement. Conduct research about this movement. (State website; professional orga..

Company produces small motors at a production cost : The H&S Motor Company produces small motors at a production cost of $30 per unit. Defective motors can be reworked at a cost of $12 each. The company produces 100 motors per day and averages 80 percent good-quality motors. Using the number of good mo..

Describe the conquests of alexander the great : HS150: Describe the conquests of Alexander the Great and analyze the legacy of his empire. (Refer to chapter 7 of your textbook and additional references) Be sure to mention his impact on Persia, India, and Egypt as well as the cultural implicati..

Describe distribution of possible sample proportion : For a random sample of 2500 households measured by a rating agency, describe the distribution of the possible sample proportions who watch the program.

Equal pay act go far enough in prohibiting : In your opinion, does the Equal Pay Act go far enough in prohibiting pay discrimination? Why, or why not? Should the proposed amendments to the EPA found in the Fair Pay Act be enacted? Why, or why not?

Why it is desirable to take as large a sample : Use the information about the sampling distribution for a sample mean to explain why it is desirable to take as large a sample as possible when trying to estimate a population value.

User Account

All Pages