Author: Christine Farr


Problem 2
Last week a painter painted three houses in five days. This week she painted two houses in four days. In which week was the painter more productive?

A company that makes kitchen chairs wants to compare productivity at two of its facilities. At facility #1, six workers produced 240 chairs. At facility #2, four workers produced 210 chairs during the same time period. Which facility was more productive?

Aztec Furnishings makes hand-crafted furniture for sale in its retail stores. The furniture maker has recently installed a new assembly process, including a new sander and polisher.With this new system, production has increased to 90 pieces of furniture per day from the previous 60 pieces of furniture per day. The number of defective items produced has dropped from 10 pieces per day to 1 per day. The production facility operates strictly eight hours per day. Evaluate the change in productivity for Aztec using the new assembly process. (If the change is decrease identify with a negative symbol (-).)

Med-First is a medical facility that offers outpatient medical services. The facility is considering offering an additional service, mammography screening tests, on-site. The facility estimates the annual fixed cost of the equipment and skills necessary for the service to be $120,000. Variable costs for each patient processed are estimated at $35 per patient. If the clinic plans to charge $55 for each screening test, how many patients must it process a year in order to break even?

Slick Pads is a company that manufactures laptop notebook computers. The company is considering adding its own line of computer printers as well. It has considered the implications from the marketing and financial perspectives and estimates fixed costs to be $500,000. Variable costs are estimated at $200 per unit produced and sold.If the company plans to offer the new printers at a price of $350, how many printers does it have to sell to break even?Describe the types of operations considerations that the company needs to consider before making the final decision.(Round answer to 0 decimal place, e.g. 125.)

Harrison Hotels is considering adding a spa to its current facility in order to improve its list of amenities. Operating the spa would require a fixed cost of $25,000 a year. Variable cost is estimated at $35 per customer. The hotel wants to break even if 12,000 customers use the spa facility. What should be the price of the spa services? (Round answer to 2 decimal places, e.g. 15.25.)

See More
Try a College Course Free

Sophia’s self-paced online courses are a great way to save time and money as you earn credits eligible for transfer to over 2,000 colleges and universities.*

Begin Free Trial
No credit card required

26 Sophia partners guarantee credit transfer.

226 Institutions have accepted or given pre-approval for credit transfer.

* The American Council on Education's College Credit Recommendation Service (ACE Credit®) has evaluated and recommended college credit for 21 of Sophia’s online courses. More than 2,000 colleges and universities consider ACE CREDIT recommendations in determining the applicability to their course and degree programs.