QUESTION 1 Two methods (A and B) were used to produce 8,000 battery covers for the back of a Sony Ericsson (cyber-shot)

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Question 1 Two Methods A And B Were Used To Produce 8 000 Battery Covers For The Back Of A Sony Ericsson Cyber Shot 1 (61.23 KiB) Viewed 42 times

QUESTION 1 Two methods (A and B) were used to produce 8,000 battery covers for the back of a Sony Ericsson (cyber-shot) mobile phone. The following are further detail: Method A Set-up cost CA = 4 hour @ $3,000/hour Material cost = $4 per cover Processing one unit takes 0.02 minute at $2000/hour Method B Set-up cost CA = 11 hour @ $3,000/hour Material cost = $1.5 per cover Processing one unit takes 0.05 minute at $2000/hour a) Calculate the Total Component Cost for Methods A and B [9 Marks] b) If we were thinking of manufacturing 2000 battery covers instead, which method would be less expensive: A or B? Use a graph to demonstrate your answer. [10 Marks] c) State three (3) benefits that can be derived from standardization. Ensure you give reasons for your answers. [6 Marks] TOTAL 25 Marks