At the Beginning of the Current Year,Smith Company Installed a JIT

question 6

Multiple Choice

At the beginning of the current year,Smith Company installed a JIT purchasing and manufacturing system.The following information has been gathered about one of the company's products. $\begin{array}{lr}\text { Theoretical annual capacity } & 4,000 \\\text { Actual production } & 3,600 \\\text { Production hours available } & 2,000 \\\text { Actual cost per unit } & \$ 28\end{array}$

-What is the theoretical velocity per hour?

• A)0.5 units
• B)0.55 units
• C)1.8 units
• D)2.0 units

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