Swift Feet, Inc. can produce 1,000 pairs of sneakers per hour at maximum efficiency. There are...
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Swift Feet, Inc. can produce 1,000 pairs of sneakers per hour at maximum efficiency. There are three 8-hour shifts each day. Due to unavoidable operating interruptions, production averages 800 units per hour. The plant actually operates only 27 days per month. Based on the current month's budget, Swift Feet estimates that it will be able to sell only 500,000 units due to the entry of a competitor with aggressive marketing capabilities. But demand is unlikely to be affected in future and will average around 515,000 units each month. Assuming 30 days per month, calculate Swift Feet 's monthly (a) theoretical capacity, (b) practical capacity, (c) normal capacity utilization, and (d) master-budget capacity utilization. Swift Feet, Inc. can produce 1,000 pairs of sneakers per hour at maximum efficiency. There are three 8-hour shifts each day. Due to unavoidable operating interruptions, production averages 800 units per hour. The plant actually operates only 27 days per month. Based on the current month's budget, Swift Feet estimates that it will be able to sell only 500,000 units due to the entry of a competitor with aggressive marketing capabilities. But demand is unlikely to be affected in future and will average around 515,000 units each month. Assuming 30 days per month, calculate Swift Feet 's monthly (a) theoretical capacity, (b) practical capacity, (c) normal capacity utilization, and (d) master-budget capacity utilization.
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Answer Explanation a we multiply the number of pairs of sneakers produced per hour by the numb... View the full answer
Related Book For
Accounting Principles
ISBN: 978-0470533475
9th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date:
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