A car wash services 200 customers in three hours on a lovely Saturday afternoon.

Question

A car wash services 200 customers in three hours on a lovely Saturday afternoon. The car wash is staffed with 5 employees at any given time. An appropriate measure of productivity is A) 40% B) 75% C) 66.67 car per labor hour. D) 13.33 cars per labor hour An entrepreneur identifies a product that she knows will sell like crazy if he can only figure out a way to bring it to her area. The idea is so fantastic that I can't tell you what it is, so we will just refer to it as X. The entrepreneur has identified four ways to bring X to the masses; she can import it, she can smuggle it, she can try to produce it on her own, and she can have a local reputable producer make it for her. The fixed and variable costs for each of these alternatives are shown below. What is her best course of action if she believes the demand will be 55,000 units? Import S0 Produce $500,000 $10 Smuggle $200,000 $15 Outsource S0 S37 Fixed cost Variable Cost $30 A) Produce B) B) Smuggle C) C) Import A) D) Outsource

Explanation / Answer

1)

Number of labor hours:

= 5persons×3hrs

= 15 labor hours.

Productivity:

= Total cars washed/Labor hours

= 200/15

= 13.33 cars per labor hours

Hence, correct option is (D) 13.33 cars per labor hour.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.