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Business, 13.10.2021 22:30 tatejordan02

The Goodparts Company produces a component that is subsequently used in the aerospace industry. The component consists of three parts (A, B, and C) that are purchased from outside and cost 45, 40, and 20 cents per piece, respectively. Parts A and B are assembled first on assembly line 1, which produces 110 components per hour. Part C undergoes a drilling operation before being finally assembled with the output from assembly line 1. There are, in total, six drilling machines, but at present only three of them are operational. Each drilling machine drills part C at a rate of 40 parts per hour. In the final assembly, the output from assembly line 1 is assembled with the drilled part C. The final assembly line produces at a rate of 130 components per hour. At present, components are produced eight hours a day and five days a week. Management believes that if the need arises, it can add a second shift of eight hours for the assembly lines. The cost of assembly labor is 25 cents per part for each assembly line; the cost of drilling labor is 20 cents per part. For drilling, the cost of electricity is 1 cent per part. The total overhead cost has been calculated as $1,100 per week. The depreciation cost for equipment has been calculated as $20 per week. a. Determine the process capacity (number of components produced per week) of the entire process.

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