Business, 08.11.2019 03:31 bankskry

Ambrosia corp. is a manufacturer of equipment used in manufacturing. it currently produces a product with 30 parts but through redesign has reduced the number of parts to 9. then current activity capacity and demand for the 30 unit configuration and expected activity demand for the 9 part configuration are provided below: activities activity driver activity capacity current activity demand expected activity demand materials usage number of parts 300,000 300,000 90,000 assembly direct labor hours 20,000 20,000 6,000 purchasing parts number of orders 20,000 16,000 8,000 materials usage has a rate of $6 per part and no fixed costs. assembly has a rate of $20 per labor hour with no fixed component. purchasing requires clerks that can process 5,000 purchase orders. each clerk earns $40,000 per year. there is also a $1 per order processing cost. what is the total cost reduction of the new design?

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Ambrosia corp. is a manufacturer of equipment used in manufacturing. it currently produces a product...