Question: A company has a factory that is designed so that it is most efficient (average unit cost is minimized) when producing 15,000 units of output

A company has a factory that is designed so that it is most efficient (average unit cost is minimized) when producing 15,000 units of output each month. However, it has an absolute maximum output capability of 17,250 units per month, and can produce as little as 7000 units per month without corporate headquarters shifting production to another plant. If the factory produces 10,925 units in October, what is the capacity utilization rate in October for this factory?

Step by Step Solution

★★★★★

3.40 Rating (166 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Factory produces 10925 u... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

287-B-M-L-S-C-M (1330).docx

120 KBs Word File

Students Have Also Explored These Related Management Leadership Questions!

A closed combustion chamber is designed so that it maintains a constant pressure of 300 kPa during a combustion process. The combustion chamber has an initial volume of 0.5 m3 and contains a...

A closed combustion chamber is designed so that it maintains a constant pressure (p) of 120 kPa during the combustion process. The combustion chamber has an initial volume of 0.6 m3 and contains a...

The concrete gravity dam is designed so that it is held in position by its own weight. Determine the factor of safety against overturning about point A if x = 2 m. The factor of safety is defined as...

Q3. Sunrise Baking Company markets doughnuts through a chain of food stores. It has been experiencing overproduction and underproduction because of forecasting errors. The following data are its...

12. What are some major capacity considerations in a hospital? How do they differ from those of a factory? (2 points) 13. A bike shop is designed to operate most efficiently at an output of 550 bikes...

please ans. the given questions Unit 2 01: Forecasting Q3. Sunrise Baking Company markets doughnuts through a chain of food stores. It has been experiencing overproduction and underproduction because...

Unit 2 02: Strategic Capacity Management Q4. For the following questions, use the formula of Capacity Utilization Rate. Capacity utilization rate = Capacity used Best operating level 1. A...

Review Questions Ch 4 1 . A manufacturing shop is designed to operate most efficiently at an output of 5 5 0 units per day. In the past month, the plant averaged 4 9 0 units per day. What was their...

please cmplt asap Q4. For the following questions, use the formula of Capacity Utilization Rate. Capacity utilization rate = Capacity used Best operating level 1. A manufacturing shop is designed to...

Problem 5-2 (Algo) A company has a factory that is designed so that it is most efficient (average unit cost is minimized) when producing 29,000 units of output each month. However, it has an absolute...

Aardvark Delivery Service (ADS)' was formed 30 years ago with a mandate to establish a private delivery system in the country of Aardvark. By 20X5, ADS was handling close to 30 million pieces of mail...

A composition teacher wishes to see whether a new grammar program will reduce the number of grammatical errors her students make when writing a two-page essay. The data are shown here. At = 0.025,...

When qantas offers first class, business class, premium, economy, and economy, with different features and amenities for each segment, they are engaged in positioning. True or false.

When a company records a deferred tax asset, it may need to also report a valuation allowance if it is more likely than not that some portion or all of the deferred tax asset will not be realized....

Solve the given system of differential equations by systematic elimination. dx = -x + 3 dt dy -y + z dt dz -x +y dt

Refer to the following chart: a. What is the name given to this type of chart? b. Suppose that 1,000 graduates will start a new job shortly after graduation. Estimate the number of graduates whose...

Parnevik Company has the following investments in its investment portfolio on December 31, 2022 (all investments were purchased in 2022): (1) 3,000 ordinary shares of Anderson Co. which cost $58,500,...

Guillen, Inc. began work on a $7,000,000 contract in 2022 to construct an office building. Guillen uses the cost-recovery method. At December 31, 2022, the balances in certain accounts were...

Why is it important to record and transcribe qualitative interviews?

Can a factory be fast, dependable, flexible, produce high-quality products, and still provide poor service from a customer's perspective?

Why should a service organization worry about being world class if it does not compete outside its own national border? What impact does the Internet have on this?

For each of the different priorities in question 3, describe the unique characteristics of the market niche with which it is most compatible?

Determine the area under the standard normal curve that lies to the left of Z=-1.64

Please answer the below question with relevant data Bankeware, a Boston-based company specializing in banking-related software, exported its software for automatic teller machines (ATM) to Oslo...

5 . Some advocate for banning ransom payments while others do not agree on their benefits. Research on the topic and provide an opinion for and another against the