QUESTION#1 (5p) Determine the utilization and the efficiency for each of these situations: a. A loan processing operation that processes an average of 6 loans per day. The operation has a design capacity of 10 loans per day and an effective capacity of 7 loans per day. b. A furnace repair team that services an average of 5 furnaces a day if the design capacity is 7 furnaces a day and the effective capacity is 6 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. YOUR ANSWER: QUESTION#2 (8) A producer of pottery is considering the addition of a new plant to absorb the backlog of demand that now exists. The primary location being considered will have fixed costs of $8,200 per month and variable costs of 65 cents per unit produced. Each item is sold to retailers at a price that averages 90 cents. a. What volume per month is required in order to break even? b. What profit would be realized on a monthly volume of 42,000 units? 77,000 units? c. What volume is needed to obtain a profit of $13,000 per month? d. What volume is needed to provide a revenue of $24,000 per month? YOUR