Assignment:
Q1. 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?
Q2. 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)?
Q3. 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)?
Provide complete and step by step solution for the question and show calculations and use formulas.