What is design capacity

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1. At present, the design and effective capacity utilization rates for C&A Burger are 0.61 and 1.5 respectively. C&A is currently producing 158 burgers in one day. What is C&A's design capacity?

2. C&A uses a machine that can produce 267 brackets per hour. C&A operates 9 hours per day. Due to scheduled maintenance, C&A expects the machine to be running 93% of the available time. What is C&A's effective capacity per day?

3. C&A's profitability is either 88225 or $50,000 depending on whether demand turns out to be high or low. The likelihood of demand being high is 66%. What is the expected value of C&A's profitability?

Reference no: EM131651232

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