An Item Sells at a Rate of 240 Units Per

question 73

Essay

An item sells at a rate of 240 units per day. If a plant works one shift per day (480 minutes), what takt time is required for the plant to meet this demand?

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Definitions:

Fixed Asset Turnover Ratio

A financial ratio that measures how efficiently a firm uses its fixed assets to generate sales, calculated by dividing net sales by net fixed assets.

Sales Revenue

The total amount of money generated by the sale of goods or services related to a company's primary operations.

Operating Expenses

Recurring expenses incurred during normal business operations, such as rent, utilities, and payroll.

Long-Lived Asset

A type of tangible or intangible asset that is used in operations and is expected to provide economic benefits for several accounting periods.