Ron Reagan, an assembly worker at Republican Iron Works, hasbeen timed performing four work elements, with the results in thebelow table. The allowances for tasks are personal, 8%; stretch,10%; and delay 3%.
| Task | perfomance% | obser | | | | |
| rating | 1 | 2 | 3 | 4 | 5 |
| 1 | 105 | .5 | .3 | .6 | .4 | .4 |
| 2 | 96 | .7 | .8 | .7 | .6 | .7 |
| 3 | 90 | .6 | .4 | .7 | .5 | .6 |
| 4 | 75 | 1.5 | 1.6 | 2.0 | 1.7 | 1.5 |
A. WHAT IS THE NORMAL TIME?
B. WHAT IS THE STANDARD TIME?
C. A product is currently made in a process-focused shop, wherefixed costs are $12,000 per year and variable cost is $45 per unit.The firm currently sells 225 units of the product at $100 per unit.A manager is considering a repetitive focus to lower costs (andlower prices, thus raising demand). The costs of this proposed shopare fixed costs = $18,000 per year and variable costs = $10 perunit. If a price of $70 will allow 400 units to be sold, whatprofit (or loss) can this proposed new process expect? Do youanticipate that the manager will want to change the process?Explain. Show the profit and breakeven point in units and salesdollars for each option
