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Mathematics, 17.10.2019 16:30 oct316mb

Acompany knows their operations has statistically a scrap (percentage of failed assemblies or material that cannot be restored) of 10%. the yearly output right now is 72 units what is the raw material the company has been buying? what would the productivity increase be if the scrap is eliminated altogether? how much money are you willing to pay to reduce scrap? assume that the cost of raw material is sc/unit, the sellin price is sp/unit, and the cost of reducing scrap by 1% is s how much would you pay to decrease your scrap to o%, if you charge $10o per produced item?

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