An Assembly Line Normally Operates Two Shifts a Day, Five

question 81

Essay

An assembly line normally operates two shifts a day, five days per week. The planned capacity of the assembly line is 380 units/shift. Determine the average safety capacity if 700 items are assembled a day, on average.

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Definitions:

Amortization Schedule

A schedule of payments; the schedule shows the amount of interest and the amount of principal in each payment.

Interest on Unpaid Balance

The interest charged on the remaining amount of debt that has not been paid off within a given period.

Equal Monthly Payments

Fixed payments made every month, often used in loans or installment plans to repay the principal and interest.

Amortize

The process of gradually paying off a debt over a period through scheduled payments, which may include interest.