Drying times for newly painted microwave oven cabinets are normally distributed with a mean of 2.5 minutes and a standard deviation of 0.25 minutes. After painting, each cabinet is mated with its electronic modules and mechanical components. The production manager must decide how much time to allow after painting before these other components are installed. If the time is too short, the paint will smudge and the unit will have to be refinished. If the time is too long, production efficiency will suffer. A consultant has concluded that the time delay should be just enough to allow 99.8% of the cabinets to dry completely, with just 0.2% ending up being smudged and sent back for refinishing. Given this information, for what time setting should the production manager set the automatic timer that pauses the production line while each cabinet dries?

Fanning company is considering the addition of a new product to its cosmetics line. the company has three distinctly different options: a skin cream, a bath oil, or a hair coloring gel. relevant information and budgeted annual income statements for each of the products follow. skin cream bath oil color gel budgeted sales in units (a) 110,000 190,000 70,000 expected sales price (b) $8 $4 $11 variable costs per unit (c) $2 $2 $7 income statements sales revenue (a × b) $880,000 $760,000 $770,000 variable costs (a × c) (220,000) (380,000) (490,000) contribution margin 660,000 380,000 280,000 fixed costs (432,000) (240,000) (76,000) net income $228,000 $140,000 $204,000 required: (a) determine the margin of safety as a percentage for each product. (b) prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume. (c) for each product, determine the percentage change in net income that results from the 20 percent increase in sales. (d) assuming that management is pessimistic and risk averse, which product should the company add to its cosmetics line? (e) assuming that management is optimistic and risk aggressive, which product should the company add to its cosmetics line?