Ceramics The ArtHaus by Antonia continually introduces new pattern of ceramic pl
ID: 2491253 • Letter: C
Question
Ceramics
The ArtHaus by Antonia continually introduces new pattern of ceramic plates periodically. She can produce a batch of 1,000 potentially useable units per week. However, between the shaping, firing, painting, and glazing, many are discovered to be flawed through the process and must be discarded. However, Antonia can determine where the more common flaws develop and adjust the production process to eliminate these. Her yield rate for the initial batch is usually 60%, but increase by 2% with each additional batch up to 100%. What best describes her cost schedule? How many batches does it take her to reach 10,000 units? 20,000 units?
Explanation / Answer
Ans 1With increse in batches there is better output gained. So batch cost will be dereasing with the increase in output. Like setup cost is first divided among 600 units than as the output increase to 620 the set up cost per unit will decrease. 10000 units 20000 units 1 batch 600 1 batch 600 2 nd Batch 620 2 nd Batch 620 3 640 3 640 4 660 4 660 5 680 5 680 6 700 6 700 7 720 7 720 8 740 8 740 9 760 9 760 10 780 10 780 11 800 11 800 12 820 12 820 13 880 13 880 14 900 14 900 10300 15 920 16 940 17 960 18 980 19 1000 20 1000 21 1000 22 1000 23 1000 24 1000 20100 So for 10000 units 14 batches Ans for 20000 units 24 batches