1.a.
Average manufacturing time per order.
Given information:
Expected number of orders of B7 is 125 orders.
Manufacturing time per order of B7 is 40 hours.
Annual machine capacity for B7 is 6,000 hours.
1.b.
Average manufacturing time per order.
Given information:
Expected number of orders of B7 is 125 orders.
Manufacturing time per order of B7 is 40 hours.
Annual machine capacity for B7 is 6,000 hours.
Expected number of orders of A3 is 10 orders.
Manufacturing time per order of A3 is 50 hours.
2.
Whether the introduction of new product is beneficial for B Corporation.
Given information:
Selling price per order of B7 is $15,000.
Number of orders of B7 is 125 orders.
Variable cost per order of B7 is $10,000.
Total manufacturing hours per order of B7 are 140 hours.
Inventory carrying cost per order of B7 is $0.50.
Selling price per order of A3 is $13,500.
Number of orders of A3 is 10 orders.
Variable cost per order of A3 is $9,000.
Total manufacturing hours per order of A3 are 315 hours.
Inventory carrying cost per order of A3 is $0.45.
3.
Factors that are to be considered before implementing any of the alternatives.
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