The East Coast University Uses a Printing Machine, the FL200

question 69

Multiple Choice

The East Coast University uses a printing machine, the FL200, to print exam papers. According to the operation manual, FL200 can print 2000 sets of exam papers per hour when it is operating at peak efficiency. However, Edgo Liew, the head printer, notes that in normal (but still efficient) operations, the machine can produce only 1800 sets of exam papers in an hour. Further, Edgo also notes that given the small number of students enrolled in the East Coast University, the machine is never required to print more than 1500 sets of exam papers per hour.
The practical capacity of the FL200 is:

• A) 2000 sets of exam papers per hour.
• B) 1800 sets of exam papers per hour.
• C) 1500 sets of exam papers per hour.
• D) 500 sets of exam papers per hour.

---

Definitions:

Merchandise Inventory

Merchandise inventory is the total cost of all goods held by a company for the purpose of resale during a given period.

Schedule of Accounts Payable

A detailed listing of all the amounts a company owes to its suppliers or vendors, but has not yet paid.

Subsidiary Ledger

A detailed ledger that contains information for individual accounts, supporting the summary data in the general ledger.

Controlling Account

A general ledger account that summarizes the total balances of multiple subsidiary accounts.