Home / Questions / Modified problem 6.50 from page 373 of the textbook, which now reads Baby Doll Shop manuf
Modified problem 6.50 from page 373 of the textbook, which now reads Baby Doll Shop manufactures wooden parts for dollhouses. The worker is paid $8.10 an hour and, using a handsaw, can produce a year's required production (1600 parts) in just eight 40-hour weeks. That is, the worker averages five parts per hour when working by hand. The shop is considering purchasing a power band saw with associated fixtures, to improve the productivity of this operation. Three models of power saw could be purchased: Model A (the economy version), model B (the high-powered version and model C (the deluxe high-end version). The major operation difference between these models is their speed of operation. The investment costs, including the required fixtures and other operating characteristics, are summarized as follows. By an Model A Model B Model C 10 20 Category Production rate (parts/hour) 107 160 Labour hours required 320 80 (hours/year) $1296 $867 $648 Annual labour cost $2592 (a $8.10 our $400 Annual power cost $420 $480 $4000 $6000 $7000 Initial investment
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