one of the above If the best operating level of a piece of equipment 10. Tommy i
ID: 355661 • Letter: O
Question
one of the above If the best operating level of a piece of equipment 10. Tommy is selling lemonade for $.25 and expects to is at a rate of 400 units per hour and the actual output during an hour is 350 units, which of the following is the capacity utilization rate? a. 0.75 b. 0.875 c 1.33 d. 2.33 e. 300 have labor costs of $.08 per cup and material expense of $.07 per cup. Along comes Mom and charges him rent for the street corner of $20 Approximately how many cups of Lemonade does he need to sell to break even? a. 182 b. 80 c. 250 d. 200 e. None of the above Which of the following is not considered a major process flow structure? a. Project b. Workcenter c. Assembly line d. Fabrication e Continuous Flow Which of the following is a basic type of process structure? a. Process flow diagram b. Product matrix c. Process matrix d. Workcenter e. Manual assembly 11.Explanation / Answer
8. Capacity utilization = Actual Output/ Potential output
= 350/400 = 0.875
Hence, correct answer is option (b) 0.875
9. Option (d) Fabrication is not a process flow structure. Fabrication is a kind of process.
10. Break even point in units = Fixed cost / (Sales price - Variable cost)
Fixed cost = Rent = $20
Sales price = $ 0.25
Variable cost = 0.08 + 0.07 = $ 0.15
Break even point in units = 20/ (0.25 - 0.15) = 20/0.10 = 200 units
Hence, correct answer is Option (d) 200
11. Option (d) workcenter is a basic type of process structure.
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