Answer the Following Questions Using the Information Below

question 81

Multiple Choice

Answer the following questions using the information below:
Henry Inc., a manufacturing firm, is able to produce 1,000 pairs of sneakers per hour, at maximum efficiency. There are three eight-hour shifts each day. Due to unavoidable operating interruptions, production averages 800 units per hour. The plant actually operates only 27 days per month. Based on the current budget, Henry estimates that it will be able to sell only 500,000 units due to the entry of a competitor with aggressive marketing capabilities. But the demand is unlikely to be affected in future and will be around 515,000. Assume the month has 30 days.
-What is the master-budget capacity utilization level for this budget period?

• A) 500,000 units
• B) 515,000 units
• C) 518,400 units
• D) 720,000 units

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Definitions:

Governmental Sovereignty

The supreme power or authority that a government holds over its territory and population without interference from outside sources.

Corporate Code

A set of principles or ethics that guide the behavior and decisions of a company.

Conduct

The manner in which individuals behave in a professional setting, often guided by organizational policies and ethical standards.

Business Standards

Established norms and ethical practices that guide the operations and conduct of businesses.