Problem 3. ]

Toyota embarked on efforts to make its domestic factory lines more flexible and introduce other changes to be able to break even at capacity utilization of 70 percent. Toyotas production capacity is 20,000 units per day and they achieve this capacity by using 200 labor hours at full production capacity.

a) (5 points) What is the daily break even production volume for Toyota?

b) (5 points) What is the labor productivity of Toyota at full capacity?

Problem 4. ]

Pro-Print is a subsidiary of the Pro-Comp Company. Pro-Print prints business catalogues for Pro- Comp. Pro-Prints monthly fixed cost is $12,000, direct labor cost is $6 per catalogue, and material is $4 per catalogue. Pro-Comp pays $22 per unit for the first 500 catalogues ordered from Pro-Print every month and $18 for each additional catalogue ordered. What is the minimum number of catalogues Pro-Comp should order every month for Pro-Print to make a profit?