Figure 7-3

question 19

Multiple Choice

Figure 7-3.Hamilton Company manufactures engines. Hamilton produces all the parts necessary for its engines except for one electronic component, which is purchased from two local suppliers: Traynor Inc. and Bello Company. Both suppliers are reliable and rarely deliver late; however, Traynor sells the component for $10.00 per unit and Bello sells the same component for $8.95. Hamilton purchases 70% of its components from Bello, because of the lower price. The total annual demand is 75,000 units.
-Refer to Figure 7-3. Calculate the activity rate for reworking products based on rework hours. Round to the nearest whole dollar.

• A) $599 per hour
• B) $595 per hour
• C) $602 per hour
• D) $605 per hour
• E) $622 per hour

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Definitions:

Incremental Improvement

A continuous effort to enhance products, services, or processes through small, gradual changes rather than through large, significant innovations.

Failed Change Efforts

Attempts at organizational or societal change that do not achieve their intended outcomes.

Cynical

An attitude of skepticism or distrust towards people's motives or integrity, often believing that human actions are motivated purely by self-interest.

Popular Management Programs

Widely recognized and implemented courses or software designed to improve management skills and business operations.