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Figure 7-3

Question 71

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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 percent of its components from Bello,because of the lower price.The total annual demand is 75,000 units.
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 percent 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 inspecting components based on sampling hours. A) $78 per hour B) $72 per hour C) $77.25 per hour D) $80 per hour E) $76 per hour 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 percent 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 inspecting components based on sampling hours. A) $78 per hour B) $72 per hour C) $77.25 per hour D) $80 per hour E) $76 per hour Refer to Figure 7-3.Calculate the activity rate for inspecting components based on sampling hours.


A) $78 per hour
B) $72 per hour
C) $77.25 per hour
D) $80 per hour
E) $76 per hour

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