Determine the utilization and the efficiency

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1. Determine the utilization and the efficiency for the following situation:

(a) A loan processing operation that processes an average of 10 loans per day. The operation has a design capacity of 16 loans per day and an effective capacity of 12 loans per day.

Please solve the following problem related to cost-volume analysis

2. A producer of pens has fixed costs of $12,000 per month which are allocated to the operation and variable costs are $1.80 per pen.

(a) Find the break-even quantity if pens sell at $2.4 each.

(b) Find the profit if the company produces 25,000 pens and pens sell at $2.4 each?

3. A firm plans to begin production of a new small appliance. The manager must decide whether to purchase the motor for the appliance from a vendor at eight dollars each or to produce them in-house. The in-house process would have an annual fixed cost of $160,000 and a variable cost of six dollars per unit. Determine the range of annual volume for which each of the alternatives would be best.

Reference no: EM132207688

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