Suppose Operation X Feeds Directly into Operation Y

question 201

Multiple Choice

Suppose operation X feeds directly into operation Y. All of X's output goes to Y, and Y has no other operations feeding into it. X has a design capacity of 80 units per hour and an effective capacity of 72 units per hour. Y has a design capacity of 100 units per hour. What is Y's maximum possible utilization?

• A)80 percent
• B)72 percent
• C)90 percent
• D)70 percent
• E)60 percent

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Definitions:

Forgery

The act of falsely making or altering a writing with the intent to defraud, such as signing another person’s name to a check without authorization.

Fraudulently

Acting with intentional deception to secure unfair or unlawful gain, or to deprive a victim of a legal right.

Marginal Cost

The supplementary expense resulted from manufacturing one extra unit of a good or service.

Variable Cost

A cost that varies with the level of output or production, such as materials and labor costs.