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Prior to installing a JIT system, Grindstone Company used machine hours to assign maintenance costs to its three products of 4-inch, 6-inch, and 9-inch insulation. The maintenance costs totaled $432,000 per year. The machine hours used by each product and the quantity produced of each product are as follows: After installing JIT, three manufacturing cells were created and the cell workers were trained to perform maintenance. Maintenance costs for the three cells still totaled $432,000; however, these costs are now traceable to each cell.
The maintenance cost per roll of 9-inch insulation before JIT is installed would be
Keynes
John Maynard Keynes was a British economist whose theories revolutionized macroeconomic practices and governmental economic policies.
Government Spending
Expenditures made by the government for the purpose of economic activity, including salaries of public servants, public projects, and social services.
Recession
A marked reduction in economic performance widespread throughout the economy, persisting for more than a few months, often seen in real GDP, real income, employment, industrial production, and wholesale-retail sales.
Expected Profit Rate
The forecasted return or profit expressed as a percentage that a business or investment is projected to earn over a specific period.
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