Extreme wreaths, inc., makes wreaths in batch sizes of 15 at a time. the cutting and assembly process takes 10 minutes per wreath, and the decorating process time is 7 minutes per wreath. it takes 5 minutes to move the wreaths from the cutting and assembly process to the decorating process. in an effort to improve the lead time, the company has tried reducing the batch size to 10 units. the new process is as follows: cutting and assembly process—8 minutes. the decorating process is still 7 minutes per wreath. it takes 5 minutes to move the wreaths from the cutting and assembly process to the decorating process.
a. compute the value-added, non-value-added, and the total lead times of the wreath process for both the old and new manufacturing processes. old process new process value-added lead time non-value-added lead time: move time within batch wait time total lead time
b. compute the value-added ratio for both the old and new process. round to one decimal place. old process new process value-added ratio % %

In which of the following situations would the price of a good be most likely to increase? a. a breakthrough in productive technology enables a company to increase its output. b. an increase in production costs results from a rise in wages. c. there's a sudden increase in the number of companies competing to sell the good. d. a drop in demand happens too quickly for producers to decrease production to keep up.

Mr. smith recently faced a choice between being (a) an economics profes-sor, which pays $60,000/yr, or (b) a safari leader, which pays $50,000/yr. after careful deliberation, smith took the safari job, but it was a close call. "for a dollar more," he said, "i'd have gone the other way."now smith's brother-in-law approaches him with a business proposition. the terms are as follows: - smith must resign his safari job to work full-time in his brother-in-law's business.- smith must give his brother-in-law an interest-free loan of $100,000, which will be repaid in full if and when smith leaves the business. (smith currently has much more than $100,000 in the the business will pay smith a salary of $70,000/yr. he will receive no other payment from the business.the interest rate is 10 percent per year. apart from salary considerations, smith feels that working in the business would be just as enjoyable as being an economics professor. for simplicity, assume there is no uncertainty regarding either smith's salary in the proposed business or the security of his monetary investment in it. should smith join his brother-in-law and, if so, how small would smith's salary from the business have to be to make it not worthwhile for him to join? if not, how large would smith's salary from the business have to be to make it worthwhile for him to join?

Garfield corporation is considering building a new plant in canada. it predicts sales at the new plant to be 50,000 units at $5.00/unit. below is a listing of estimated expenses. category total annual expenses % of annual expense that are fixed materials $50,000 10% labor $90,000 20% overhead $40,000 30% marketing/admin $20,000 50% a canadian firm was contracted to sell the product and will receive a commission of 10% of the sales price. no u.s. home office expenses will be allocated to the new facility. the contribution margin ratio for garfield corporation is