Explain percentage must materials cost be reduced, Operation Management

Assignment Help:

Merk, Inc., produces electronics component on an assembly line. The standard cost for the component is $105 (labor $15, materials $60, and other costs $30). The sellings price is $200. The company wishes to achieve a 5% increase in total factor productivity by reducing the materials cost only (with labor cost and other remaining constant.) By what percentage must materials cost be reduced to achieve this goal?


Related Discussions:- Explain percentage must materials cost be reduced

Explain what is the best production order quantity, Johnson Plastics makes ...

Johnson Plastics makes and sells, among many other things, specialty plastic display cases for retail stores. Johnsons expected demand for the display cases is 1,000 units, and ave

Industrial production, Industrial Production The output of U.S. factori...

Industrial Production The output of U.S. factories is mines, and utilities. This output constitutes the production of things like the goods, portion of goods, and the services.

Productivity measurement in organisations, Productivity Measurement In...

Productivity Measurement In Productivity measurement, we identify the factors affecting productivity and divide them into two major categories: external and internal. We ident

Explain quality of work life, Why are unions exploring new collaboration so...

Why are unions exploring new collaboration solutions in the face of economic/work adversity, and how did Saturn's ambitious Quality of Work Life (QWL) program address these factors

Explain protected group category, To be considered lawful, a voluntary affi...

To be considered lawful, a voluntary affirmative action plan must meet all of the following criteria except: a. it must be permanent b. It must exist to eliminate past imbalances b

Find the total cost of ordering and carrying semiprecious, 1. A jewelry fir...

1. A jewelry firm buys semiprecious stones to make bracelets and rings. The supplier charges $20 per stone, annual carrying costs are 50%, and the cost of processing orders is $40.

Multi-skill staff and multipurpose machinery flexible, How are multi-skill ...

How are multi-skill staff and multipurpose machinery flexible? Multi skilled operatives permit greater flexibility and economies of scope. For example quite than just being a m

Explain firms do not compete only against global competitors, Firms do not ...

Firms do not compete only against global competitors, but against- Their suppliers. Themselves. The customers of their competitors. Their competitors supply chains.

How to use the financial ratios presented, Which of the three warehouse clu...

Which of the three warehouse club rivals has been the strongest financial performer in recent years? Support your answer with calculations based on the data in case Exhibits 2,6, a

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd