Problem 1: Determine the utilization and the efficiency for each of these situations. a) A loan processing operation that processes an average of 7 loans per day. The operation has a design capacity of 10 loans per day and an effective capacity of 8 loans per day. b) A furnace repair team that services an average of four furnaces a day if the design capacity is six furnaces a day and the effective capacity is five furnaces a day. c) Would you say that systems that have higher efficiency ratios than other systems will always have higher utilization ratios than those other systems? Explain. Problem 2: Part 1: A pizza restaurant is opening a new branch. They can buy a small oven that can handle 20 pizzas per hour or a large oven that can handle 40 pizzas per hour. The small oven has fixed costs of $20,000 and variable costs of $2.00 per pizza. The large oven has fixed costs of $30,000 and variable costs of $1.25 per pizza. Pizzas sell for $12 per pizza. a) What is the break even point for the small oven in terms of pizzas? b) How many days are needed to break even with the small oven assuming that they operate ten hours a day at maximum capacity? c) What is the break even point for the large oven? Problem 2: Part 2: The owner is uncertain of the demand that will occur at each branch. In order to understand the situation further, he decides to look at the demand over one month. He assumes that in one month the restaurant is open for 300 hours total. a) What is the maximum capacity for the small oven in one month? b) What is the maximum capacity for the large oven in one month