Question

The specifications on an electronic component in a target-acquisition system are that its life must be...

The specifications on an electronic component in a target-acquisition system are that its life must be greater than 5000 hrs. Assume the life is normally distributed with mean 7500 hrs. The manufacturer realizes a sale price of $10 per unit produced (i.e. profit is $10 minus manufacturing cost); however, defective units must be replaced at a cost of $5 to the manufacturer, thus the defective cost will be $5 plus manufacturing cost. Two different manufacturing processes can be used, both of which have the same mean life. However, the standard deviation of life for process 1 is 1000 hrs, whereas for process 2 it is only 500 hrs. Production costs for process 2 are twice those for process 1. What value of manufacturing costs will determine the selection between processes 1 and 2?

Math   Statistics-And-Probability   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The life length X of an electrical component follows an exponential distribution. There are 2 Processes...
The life length X of an electrical component follows an exponential distribution. There are 2 Processes by which component may be manufactured. The expected life length of the Component is 100 hrs. if process I is used to manufacture, while 150 hrs. if process II is used. The cost of manufacturing a single component byprocess I is 10 OMR , while it is 20 OMR for Process II. Moreover, if the components last less than the guaranteed life of 200...
The Green company produces chairs according to customer specifications. Its normal order cost system consists of...
The Green company produces chairs according to customer specifications. Its normal order cost system consists of 2 categories of direct costs (materials and labor) and one category of indirect manufacturing costs (single cost pool). Manufactory overhead are applied using a rate based on machine hours. The following was budgeted for 2020. Direct labor 1,350,000 Manufactory Overhead 990,000 Machine hours 24,750 At the end of 2020, two orders were identified with the following accumulated costs: Order 1 Order 2 Direct materials...
Corrigan Enterprises is studying the acquisition of two electrical component insertion systems for producing its sole...
Corrigan Enterprises is studying the acquisition of two electrical component insertion systems for producing its sole product, the universal gismo. Data relevant to the systems follow. Model no. 6754: Variable costs, $19.00 per unit Annual fixed costs, $986,200 Model no. 4399: Variable costs, $10.80 per unit Annual fixed costs, $1,114,100 Corrigan’s selling price is $66 per unit for the universal gismo, which is subject to a 15 percent sales commission. (In the following requirements, ignore income taxes.) 1. How many...
EnterTech has noticed a significant decrease in the profitability of its line of portable CD players....
EnterTech has noticed a significant decrease in the profitability of its line of portable CD players. The production manager believes that the source of the trouble is old, inefficient equipment used to manufacture the product. The issue raised, therefore, is whether EnterTech should (1) buy new equipment at a cost of $120,000 or (2) continue using its present equipment. It is unlikely that demand for these portable CD players will extend beyond a five-year time horizon. EnterTech estimates that both...
EnterTech has noticed a significant decrease in the profitability of its line of portable CD players....
EnterTech has noticed a significant decrease in the profitability of its line of portable CD players. The production manager believes that the source of the trouble is old, inefficient equipment used to manufacture the product. The issue raised, therefore, is whether EnterTech should (1) buy new equipment at a cost of $120,000 or (2) continue using its present equipment. It is unlikely that demand for these portable CD players will extend beyond a five-year time horizon. EnterTech estimates that both...
EnterTech has noticed a significant decrease in the profitability of its line of portable CD players....
EnterTech has noticed a significant decrease in the profitability of its line of portable CD players. The production manager believes that the source of the trouble is old, inefficient equipment used to manufacture the product. The issue raised, therefore, is whether EnterTech should (1) buy new equipment at a cost of $120,000 or (2) continue using its present equipment. It is unlikely that demand for these portable CD players will extend beyond a five-year time horizon. EnterTech estimates that both...
Como Tool and Die was a second-tier component supplier to the auto industry. Its largest customer...
Como Tool and Die was a second-tier component supplier to the auto industry. Its largest customer was Ford Motor Company. Como had a reputation for delivering a quality product. During the 1980s and the early 1990s, Como’s business grew because of its commitment to quality. Emphasis was on manufacturing operations, and few attempts were made to use project management. All work was controlled by line managers who, more often than not, were overburdened with work. The culture at Como underwent...
Como Tool and Die was a second-tier component supplier to the auto industry. Its largest customer...
Como Tool and Die was a second-tier component supplier to the auto industry. Its largest customer was Ford Motor Company. Como had a reputation for delivering a quality product. During the 1980s and the early 1990s, Como’s business grew because of its commitment to quality. Emphasis was on manufacturing operations, and few attempts were made to use project management. All work was controlled by line managers who, more often than not, were overburdened with work. The culture at Como underwent...
In its ongoing efforts to make the student life easier, Large Mart is currently attempting to...
In its ongoing efforts to make the student life easier, Large Mart is currently attempting to develop a “study pillow” which will allow students to upload study material into their brain whilst sleeping. However, Large Mart has recently discovered that an American company called Bpple already holds a patent for this type of device. As a result, Large Mart has given up on its development attempts and decided to sell the Bpple product, which is called iSLEEP. In order to...
In its ongoing efforts to make the student life easier, Large Mart is currently attempting to...
In its ongoing efforts to make the student life easier, Large Mart is currently attempting to develop a “study pillow” which will allow students to upload study material into their brain whilst sleeping. However, Large Mart has recently discovered that an American company called Bpple already holds a patent for this type of device. As a result, Large Mart has given up on its development attempts and decided to sell the Bpple product, which is called iSLEEP. In order to...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT