Question

how to solve value index goven cost and worth and how to calculate total at the end

The LEGO Toy company has the following problems: 1. Too much wasted time to produce a given product. 2. Too many orders are returned because of errors. 3. Too many products are shipped incomplete or not on time. This company needs to reduce the number of returned Legos and find a way to increase profitability. Below is the function worth table. Complete the table with the right value index (7.5 points) Item Function Cost Worth Value Index Design Define product $1000 $500 Manufacture Form product $100 $100 Package Package product $25 $5 Shipping Ship-to customer $15 $3 Receiving Receive product $25 $5 Redesign Repair product $150 $1 Repair Repair product $250 $1 Reshipment Satisfy customer $15 $1 Repair shop Repair product $50 $1 Accounting Control expenditure $100 $10 Total

Answer 1

Value index is defined as cost / worth. Using this the table is completed and shown below:

Item	Function	Cost ($)	Worth ($)	Value index
Design	Define product	1000	500	2
Manufacture	Form product	100	100	1
Package	Package product	25	5	5
Shipping	Ship-to customer	15	3	5
Receiving	Receive product	25	5	5
Redesign	Repair product	150	1	150
Repair	Repair product	250	1	250
Reshipment	Satisfy customer	15	1	15
Repair shop	Repair product	50	1	50
Accounting	Control expenditure	100	10	10
Total		1730	627	2.759170654