Estimated its annual demand for its photon tubes

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Reference no: EM132232821

1. Empire Inc. has estimated its annual demand for its Photon Tubes. Next year has a forecast of 95,000 units demanded with a probability of 90%. Empire’s current capacity is 100,000 photon tubes /year.

What is the capacity cushion (if any)?

2. Excel widgets have a resource W that is available to use 80 hours/week. It runs part X at a standard rate of 90 parts/hour. Last week's production log showed that W was used 75 hours and that 7,000 part X's were made.

a. What was the overall utilization for resources W?

b. What was the efficiency rate?

Reference no: EM132232821

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