Business, 19.02.2021 01:00 Samuelgamboe
Jim Jones, an industrial engineer from Tech, has improved the manufacturability of an existing product at MKBK Manufacturing Inc. in Cookeville. The improvement has resulted in a 10% reduction in processing time from 100 minutes to 90 minutes. However, the method requires an investment of $5,000. The product will be made at the rate of 4,000 for the first year and will be increased at the rate of 500 for the next three years. To justify the $5,000 investment, determine how much the reduction in processing time per hour is worth in dollars.
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