What is the prime cost for each ice pack

Assignment Help Operation Management

Reference no: EM131124562

Susie owns a small manufacturing company, Cold As Snow, that makes ice packs for use in coolers. She purchases the plastic for her packs in bulk orders for a price of $64.14. Each order of plastic makes 150 packs. She purchases the snow for her packs in bulk orders for a price of $111.20. Each order of snow makes 80 packs. In a time study, her three workers averaged 5, 8, and 10 minutes respectively to prepare each plastic; 3,2, and 7 minutes respectively to prepare the snow for one pack; and 4,5, and 3 minutes respectively to assemble the prepared pieces into a finished ice pack. The workers are paid $12.40 per hour. What is the prime cost for each ice pack? Note: Find the average time it takes each worker to build one complete ice pack to determine how many packs are produced each hour. For this problem, assume no breaks are taken.

Reference no: EM131124562

Questions Cloud

Describe the diversification strategy : Describe the Ritz-Carlton’s diversification strategy. Consider the lessons of Chapter 8. What type of diversification strategy did the company use? Why was this strategy particularly appealing?

Project management to create customer value : Many universities, industry professionals, and organizations feel that operations management and project management go hand in hand. How does a firm integrate principles of both operations management and project management to create customer value?

How many days would you record for away from work : Karen Kite works in the Admissions Department at Kitty Hawk University. While leaving for lunch on Monday, she fell down the steps and broke her left arm. How many days would you record for "Away from Work" and how many days for "On job transfer or r..

Compare trade-offs between a centralized direct sales model : Despite its previous success of direct sales in the 1990s, Dell decided to offer its PC/laptop models through Wal-Mart, Best Buy, and other retailers in 2007. Compare the trade-offs between a centralized direct sales model with the indirect sales mod..

What is the prime cost for each ice pack : Susie owns a small manufacturing company, Cold As Snow, that makes ice packs for use in coolers. She purchases the plastic for her packs in bulk orders for a price of $64.14. Each order of plastic makes 150 packs. She purchases the snow for her packs..

Product with existing product in marketing communications : In the late 1970s, Pepsi successfully launched the “Pepsi challenge” marketing campaign which showed that consumers preferred Pepsi over Coco-Cola in blind taste tests. In response, Coco-Cola developed a new formula afar “spending four years testing ..

Considering the possibility of building additional factory : Expando, Inc. is considering the possibility of building an additional factory that would produce a new addition to their product line. The company is currently considering three alternatives: build small plant, build large plant, and do nothing.

Project manager in project procurement management : Describe the role of the Project Manager in Project Procurement Management as described by the PMBOK, including what the Project Manager is and is not responsible for in that process.

Delivery of products called for under their contract : Buyer Bobbie and Seller Bob are locked in a dispute over the delivery of products called for under their contract. Bobbie says that the products that she prepaid for do not conform to the requirements of the contract, but Bob refuses to refund the pa..

User Account

All Pages