A company currently using an inspection process in its material receiving department is trying to install an overall reduction program. One possible reduction is the elimination of one inspection position. The position tests items for which the probability of a material defect averages 0.04. By inspecting all items, the inspector is able to remove all defects. . The inspector can inspect 53 units per hour. The hourly rate including fringe benefits for this position is $15. If the inspection position is eliminated, defects will go into product assembly and will have to be replaced later at a cost of $8 each when they are detected in final product testing."Assume that the line will operate at the same rate ( inspection rate), if the inspection operation was eliminated.
A1, If the inspector position is eliminated what will the hourly cost of defects be?
A2, Should this inspection process be eliminated based on costs alone?
B. What is the cost to inspect each unit?
C. Is there benefit or loss from the current inspection process? How much?
Per unit? Hourly?

Paying attention to the purpose of her speech, which questions can she eliminate? a. 1 and 2 b. 3 c. 2 and 4 d. 1-4

The east asiatic company (eac), a danish company with subsidiaries throughout asia, has been funding its bangkok subsidiary primarily with u.s. dollar debt because of the cost and availability of dollar capital as opposed to thai baht-denominated (b) debt. the treasurer of eac-thailand is considering a 1-year bank loan for $247,000.the current spot rate is b32.03 /$, and the dollar-based interest is 6.78% for the 1-year period. 1-year loans are 12.04% in baht.a. assuming expected inflation rates of 4.3 % and 1.24% in thailand and the united states, respectively, for the coming year, according to purchase power parity, what would the effective cost of funds be in thai baht terms? b. if eac's foreign exchange advisers believe strongly that the thai government wants to push the value of the baht down against the dollar by5% over the coming year (to promote its export competitiveness in dollar markets), what might the effective cost of funds end up being in baht terms? c. if eac could borrow thai baht at 13% per annum, would this be cheaper than either part (a) or part (b) above?

On january 1, year 1, purl corp. purchased as a long-term investment $500,000 face amount of shaw, inc.’s 8% bonds for $456,200. the bonds were purchased to yield 10% interest. the bonds mature on january 1, year 6, and pay interest annually on january 1. purl uses the effective interest method of amortization. what amount (rounded to nearest $100) should purl report on its december 31, year 2, balance sheet for these held-to-maturity bonds?