A local machine shop buys hex nuts and molly screws from the same supplier. Thehex nuts cost 15 cents each and the molly screws cost 38 cents each. A setup costof $100 is assumed for all orders. This includes the cost of tracking and receivingthe orders. Holding costs are based on a 25 percent annual interest rate. The shopuses an average of 20,000 hex nuts and 14,000 molly screws annually.b. If both items are ordered and received simultaneously, the setup cost of $100applies to the combined order. Compare the average annual cost of holding andsetup if these items are ordered separately; if they are both ordered when the hexnuts would normally be ordered; and if they are both ordered when the mollyscrews would normally be ordered.
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
A local machine shop buys hex nuts and molly screws from the same supplier. The
hex nuts cost 15 cents each and the molly screws cost 38 cents each. A setup cost
of $100 is assumed for all orders. This includes the cost of tracking and receiving
the orders. Holding costs are based on a 25 percent annual interest rate. The shop
uses an average of 20,000 hex nuts and 14,000 molly screws annually.
b. If both items are ordered and received simultaneously, the setup cost of $100
applies to the combined order. Compare the average annual cost of holding and
setup if these items are ordered separately; if they are both ordered when the hex
nuts would normally be ordered; and if they are both ordered when the molly
screws would normally be ordered.
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