Question: a. A firm sells dinner table sets - each set includes one table and six chairs. The price of the set is $600. The variable cost of the table is $89, and that of each chair is $42. Fixed cost for the production process is $20,000. How many sets should they sell to break even?
b. A process has a cycle time of 10 minutes. The throughput time is 9 hours. If the throughput time is reduced to 5 hours without changing the cycle time, what is the change in inventory (as a percentage)?
c. Consider a bank where loan applications are first handled by a credit analyst, and then by a loan officer. The credit analyst takes 35 minutes for each application, and the loan officer takes 15 minutes for each application Both start the day with no other work. A batch of 5 applications is delivered to the credit analyst at the start of the day. Assuming that the credit analyst completes all five applications BEFORE moving them as a batch to the loan officer, how long (in minutes) does it take for the batch to be completed (by both the credit analyst and the loan officer)?