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MBA, Ph.D in Management
Harvard university
Feb-1997 - Aug-2003
Professor
Strayer University
Jan-2007 - Present
6.
-2-2 http://ezto.mhedu A production process consists of a three-step operation. The scrap rate is 10 percent for the first step and 6 percent
for the other two steps. a. If the desired daily output is 450 units, how many units must be started to allow for loss due to scrap? (Do not
round intermediate calculations. Round up your final answer to the next whole number.) Number of units b. If the scrap rate for each step could be cut in half at every operation, how many units would this save in terms of
the scrap allowance? (Do not round intermediate calculations. Round up your final answer to the next
whole number.) Number of units c. If the scrap represents a cost of $10 per unit, how much is it costing the company per day for the original scrap
rate (i.e. the Part a scrap rate)? (Round your answer to the nearest whole number. Omit the "$" sign in your
response.) Cost $
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