QUESTION 9 Kennywood Inc., a manufacturing firm, is able to produce 1,300 pairs

Question

QUESTION 9 Kennywood Inc., a manufacturing firm, is able to produce 1,300 pairs of pants per hour, at maximum efficiency. There are three eight- hour shifts each day Due to unavoidable operating interruptions, production averages 850 units per hour. The plant actually operates only 28 days per month. Based on the current budget, Kennywood estimates that it will be able to sell only 500,000 units due to the entry of a competitor with aggressive marketing capabilities. But the demand is unlikely to be affected in future and will be around 519,000. Assume the month has 30 days. What is the master-budget capacity utilization level for this budget period? 555,400 units O 500,000 units O523,800 units 519,000 units

Explanation / Answer

B.500,000 units.

Since the demand is likely to be 500,000 units, the master budget capacity utilisation level for this budger period will be limited to 500,000 units.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

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