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1. You are the manager of a widget factory. Production of a widget is currently a two-stage process. The first stage (cutting and planning) takes 3 minutes per unit of input. The output of the first stage is then finished in the second stage that takes 4 minutes. Assume demand is very high, and all of production can be sold at a mark-up (over costs) of N3.00 per unit. Sam the supervisor is considering an upgrade to an NC (numerical control) machine that can flexibly do all these tasks (cutting, planning and finishing); moreover, this machine will take just 5 minutes to produce one unit of a widget. As a result of the upgrade, what will happen to the flow time per widget?

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