Please identify the important variables and steps to solve.
1. A job had an observed cycle time of three min., a performance rating of 70 percent, and an allowance factor that was 20 percent of job time. Normal time for the job in min. is:
2. A job had an observed time of 8 minutes, a performance rating of .80, and an allowance factor of 15 percent of job time. Twenty cycles were timed. Standard time for the job in minutes is:
3. Amazing, an internet-based retailer, has two different locations under consideration for constructing a second headquarters. The CEO estimates that due to differing land costs, utility rates, etc., both fixed and variable costs would be different for each of the proposed sites, as follows:
Location Annual Fixed Variable
East Ave. $250,000 $5
West Dr. $300,000 $4.5
What would be total annual costs for either location at the point of indifference?