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Calculate the production volume ratio

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Question - The operations manager at Pleasure Bakery budgeted to make 300,000 donuts for the month of April. The company also expects to use 750,000 budgeted labour hours to produce the same. However, during the month of April, the company made 322,500 donuts, which took 825,000 labour hours.

Required -

I. Calculate the efficiency ratio.

II. Calculate the capacity ratio.

III. Calculate the production volume ratio.

IV. Explain what is revealed by the efficiency and the capacity ratios.

Reference no: EM133188865

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