Question

13 Able Manufactucing has an opportunity to bid on a contract to produce Able could'use excess assembly capacity at its main production lacility. The contra -delivery (within two years) of 30,000 units. Able's melhods engineers suggest an -consisting of nine tasks: ari electronic assembly assembly line Performance time (minutes) Must precede Task C, e A, B, F Assembly would occur on one shift, with aveoge productive time of 7', hours per (allowances for breaks, fatigue, shutddwns, etc.). There would be twenty-t monthlr. Direct labor costs srę 59 per houl: variable overhead is estimated at 10 percent ol ditect employee daily labor; direct materials are $12 per unit; iiial tooling for the project is $100,000; and ser ified costs of manufacturing for the asšembly line are estimated at $7,000 per month. Able desites a 15 : perçent,profit magin on selling price for,such contractual commitments. Should Able submit a bid. : and, if so, at what selling pricel

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Answer 1

So total time taken = 21 minutes