A Big City Automobile Quick Oil Change Store Can Process

question 59

Multiple Choice

A big city automobile quick oil change store can process 20 vehicles per hour over its multiple bays. Each mechanic can change the oil and do other related tasks at a rate of one car every 20 minutes. If the center wanted a target labor utilization of 90%, how many mechanics would they require?

• A) More than 4 but less than or equal to 6
• B) More than 6 but less than or equal to 8
• C) More than 8 but less than or equal to 10
• D) More than 10

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense recorded for an asset, reducing its book value over time.

Equipment Costing

The process of tracking and analyzing the costs associated with the purchase and maintenance of equipment.

Cash Equivalent

Short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.

Maturity Date

The specified date on which the principal amount of a bond or other financial instrument is due to be repaid.