Answer the Following Questions Using the Information Below

question 128

Multiple Choice

Answer the following questions using the information below:
A manufacturing firm is able to produce 2,000 pairs of sneakers per hour, at maximum efficiency. There are three eight-hour shifts each day. Due to unavoidable operating interruptions, production averages 1,600 units per hour. The plant actually operates only 27 days per month.
-What is the practical capacity for the month of April?

• A)2,000,000 units
• B)1,440,000 units
• C)1,036,800 units
• D)480,000 units

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Definitions:

Cost Report

A financial report summarizing the costs associated with a specific project or department.

Relevant Range

The range of activity within which the assumptions about variable and fixed cost behavior are valid.

Car Washing Labour Cost

The expense incurred for labor in the car washing process, covering the wages and benefits of personnel involved in washing cars.

Learning Effect

Describes the improvement in employee efficiency and productivity as they become more experienced with tasks.