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Susie owns a small manufacturing company, Cold As Snow, that makes ice packs for

ID: 2459155 • Letter: S

Question

Susie owns a small manufacturing company, Cold As Snow, that makes ice packs for use in coolers. She purchases the plastic for her packs in bulk orders for a price of $64.14. Each order of plastic makes 150 packs. She purchases the snow for her packs in bulk orders for a price of $111.20. Each order of snow makes 80 packs. In a time study, her three workers averaged 5. 8, and 10 minutes respectively to prepare each plastic; 3,2. and 7 minutes respectively to prepare the snow for one pack; and 4,5, and 3 minutes respectively to assemble the prepared pieces into a finished ice pack. The workers are paid $12.40 per hour What is the prime cost for each ice pack? Note: Find the average time it takes each worker t build one complete ice pack to determine how many packs are produced each hour. For this problem, assume no breaks are takken.

Explanation / Answer

Answer

Answer 1

Figures in $

Particulars

Amount

Plastic purchase ($)

a

64.14

Packs for each order of plastic (no.)

b

150

Plastic cost per pack   (a/b)

c

0.4276

Snow purchase price

d

111.2

Packs for each order of snow

e

80

Snow cost per pack     (d/e)

f

1.39

workers cost per minute (12.40/60)

g

0.21

Each Plastic pack minutes (Ans 2 : table)

h

23

Each Snow pack minutes   (Ans 2 : table)

i

12

Assemble of finished ice pack minutes (Ans 2 :table)

j

12

Each Plastic pack cost        (g*h)

k

4.75

Each Snow pack cost         (g*i)

l

2.48

Assemble of finished ice pack cost     (g*j)

m

2.48

Total Prime cost for each pack (c+f+k+l+m)

11.53

So total Prime cost for each pack is $ 11.53

Answer 2

                                                                                  Table                                                        (Minutes)

Particulars

Worker 1

Worker 2

Worker 3

Total

Each Plastic pack time

5

8

10

23

Each Snow pack time

3

2

7

12

Each Assemble of finished ice pack time

4

5

3

12

Total time (minutes) taken by each worker for producing each ice pack       (n)

12

15

20

47

Minutes in one hour (o)

60

60

60

Ice packs produced each hour by each worker (o/n)

5

4

3

Figures in $

Particulars

Amount

Plastic purchase ($)

a

64.14

Packs for each order of plastic (no.)

b

150

Plastic cost per pack   (a/b)

c

0.4276

Snow purchase price

d

111.2

Packs for each order of snow

e

80

Snow cost per pack     (d/e)

f

1.39

workers cost per minute (12.40/60)

g

0.21

Each Plastic pack minutes (Ans 2 : table)

h

23

Each Snow pack minutes   (Ans 2 : table)

i

12

Assemble of finished ice pack minutes (Ans 2 :table)

j

12

Each Plastic pack cost        (g*h)

k

4.75

Each Snow pack cost         (g*i)

l

2.48

Assemble of finished ice pack cost     (g*j)

m

2.48

Total Prime cost for each pack (c+f+k+l+m)

11.53