Reference no: EM132961049
Question - Managerial accounting assignment Harary returned to visit Wai Lung in May 1999 and, while walking through the factory, estimated by observation that Wai Lung was at 40 percent of capacity. He also found out that Wai Lung had excess capacity to utilize because it had just lost a significant portion of its business during a disagreement with a large toy company. Harary was impressed by its size: It had 2,000 workers in its 100,000-square-foot factory in Shenzhen, about a one-hour journey by train and car from Hong Kong. Typical toy factories in this area averaged about 600 Wai Lung 287 1321.ch07 11/3/05 9:15 AM Page 287 workers. He casually asked the owner of Wai Lung for a quick overview of the projects currently in progress. Wai Lung was working on plastic play sets and action figures for Hasbro. Another company with which Wai Lung had a contract had gone bankrupt. Pressing further on a different subject, Harary got the sense that Wai Lung would not begin many projects in the near future.
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