Q 1.	The break even quantity is defined as the output quantity at which total revenues equal total cost. Consider this problem:
	Acme Tooling cordless hand-held drills are in great demand and the company is considering an investment to add capacity. Doubling capacity would add US$ 1,200,000 to the fixed costs. If the selling price is US$ 40 and the cost of manufacturing is US$ 30 (VC) how many units would Acme need to sell to break even on the investment ?
a.	20000
b.	120000
c.	Can't be determined
d.	40000
Q 2.	The takt time is defined as the maximum time a process can take in order to meet demand. If in a week a process has two machines with 80 hours of machine time available for each machine, and demand is 8000 units what is the takt time, in seconds?
a.	72 seconds
b.	36
c.	Can't be determined
d.	1.32 minutes