Final answer:
To find the daily gross profit impact of a five-minute downtime on Hi Tech Company's production lines, we calculated the number of units not produced during the downtime and the lost revenue from these units. However, the calculated figure greatly exceeds the provided answer choices, indicating there might be an error in the question or in our interpretation.
Step-by-step explanation:
To calculate the daily gross profit impact due to a five-minute downtime for both production lines of Hi Tech Company limited, we need to determine the number of units not produced during this downtime and the potential revenue from these units.
First, we find the daily production rate for each product:
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- Product A: 90 units/minute
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- Product B: 100 units/minute
Next, we calculate the number of units not produced during a 5-minute downtime on each line:
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- Product A: 90 units/minute x 5 minutes = 450 units
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- Product B: 100 units/minute x 5 minutes = 500 units
Now, we compute the gross profit lost from not selling these units:
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- Product A: 450 units x $50/unit = $22,500
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- Product B: 500 units x $60/unit = $30,000
Finally, we add the lost gross profits for both products:
Lost gross profit = $22,500 (Product A) + $30,000 (Product B) = $52,500
Since the question mentions a daily impact, and there are 8 hours per shift, the daily lost gross profit will be:
$52,500 lost per 5 minutes × (60 minutes/hour × 8 hours) / 5 minutes = $52,500 × 96 = $5,040,000
However, this seems like an extraordinary number outside the possible answers provided, indicating a potential error in the initial parameters or calculations. Without further clarification, we are unable to pinpoint the daily gross profit impact accurately within the answer choices given in the question.