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Rus_ich [418]
3 years ago
3

A key joint in a precision machining process has a lower specification limit of a width of 0.99 mm and an upper specification li

mit of 1.01 mm. The standard deviation is 0.005 mm and the mean is 1 mm. The company wants to reduce its defect probability and operate a "Six Sigma process." To what level would this company have to reduce the standard deviation in the process to meet this target?
Business
1 answer:
Ilia_Sergeevich [38]3 years ago
5 0

Answer:

To meet this target, the standard deviation has to be reduced to 0.0033 mm.

Explanation:

The objective of a six-sigma process is to ensure that the results outside the specifications are limited to the results corresponding to 3 sigma above the average or 3 sigma below the average, comprising a range of 6 sigma between the maximum and minimum values of the specifications for that process.

It implies that 99.7% of the outcomes of the process will be satisfactory and only 0.3% will fall out of the specifications.

If the actual specifications are 0.99 and 1.01, the standard deviation for the process to achieve the sig sigma level has to be

US-LS=1.01-0.99=6\sigma\\\\6\sigma=0.02\\\\\sigma=0.02/6=0.0033\\

To meet this target, the standard deviation has to be reduced to 0.0033 mm.

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Adrianna works as a purchasing manager at a trading firm and earns a salary of $60,000. She has deductions of $3,000 and tax cre
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Adrianna's salary $60,000

She has deductions of $3,000

Tax credits of $5,000

Annual tax of $6,000

What is her annual disposable income?

To solve, subtract all the deductions or money leaving her salary and add the credits she receives yearly.

$60,000 - $3,000 = $67,000

$57,000 + $5,000 = $62,000

$62,000 - $6,000 = $56,000

Adrianna's annual disposable income is $56,000.

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2 years ago
Cecil Jameson, Attorney-at-Law, is a proprietorship owned and operated by Cecil Jameson. On July 1, 2007, Cecil Jameson, Attorne
Kisachek [45]

Answer:

1. Determine the amount of owner’s equity (Cecil Jameson’s capital) as of July 1, 2007.

equity = assets - liabilities = $15,050 - $1,530 = $13,520

2. State the assets, liabilities, and owner’s equity as of July 1 in equation form similar to that shown in this chapter. In tabular form below the equation, indicate the increases and decreases resulting from each transaction and the new balances after each transaction.

since there is not enough room here, I used an excel spreadsheet

   

3. Prepare an income statement for July, a statement of owner’s equity for July, and a balance sheet as of July 31, 2007.

Cecil Jameson, Attorney-at-Law

Income Statement

For the month ended July 31, 2007

Service revenue                                                       $5,953

Expenses:

  • Paralegal services $1,635
  • Wages expense $850
  • Rent $1,200
  • Answering service expense $250
  • Utilities expense $325
  • Supplies expense $115
  • Miscellaneous expense $75                           <u>$4,450</u>

Operating income                                                     $1,503

Cecil Jameson, Attorney-at-Law

Balance Sheet

For the month ended July 31, 2007

Assets:

Cash $6,873

Accounts receivables $2,225

Supplies $980

Land $10,000

Total assets $20,078

Liabilities:

Accounts payable $720

Paralegal fees payable $1,635

Total liabilities $2,355

Equity:

Jameson, Cecil, capital $18,723

Jameson, Cecil, drawings -$1,000

Total equity $17,723

Liabilities + Equity = $20,078

Cecil Jameson, Attorney-at-Law

Statement of Owner’s Equity

For the month ended July 31, 2007

Jameson, Cecil, capital balance July 1, 2007       $13,520

Investment during the month                                  $3,700

Net income                                                                <u>$1,503</u>

Subtotal                                                                    $18,723

Drawings                                                                  <u>($1,000)</u>

Jameson, Cecil, capital balance July 31, 2007     $17,723

4. (Optional). Prepare a statement of cash flows for July.

Cecil Jameson, Attorney-at-Law

Statement of Cash Flows

For the month ended July 31, 2007

Cash flows from operating activities  

Net income                                                                  $1,503

Adjustments to net income:

  • Decrease in accounts receivables $975
  • Decrease in accounts payables ($810)
  • Increase in supplies inventory ($130)
  • Increase in paralegal fees payable $1,635       <u>$1,670</u>

Net increase in cash from operating activities          $3,173

Cash flows from investing activities                                $0

Cash flows from financing activities  

Additional paid in capital                                           $3,700

Drawings                                                                    <u>($1,000)</u>

Net increase in cash from financing activities         $2,700

Net increase in cash                                                  $5,873

Cash balance July 1, 2007                                        <u>$1,000</u>

Cash balance July 31, 2007                                      $6,873

Download pdf
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Answer:

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The variable cost is calculated as -

Sales - Variable cost = Contribution Margin

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