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What is the capacity cushion

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Reference no: EM131566446

Problem - A standard work year is 2000 hours at the Luther Mill and it takes about an hour and a half to fill a customer order. Last year saw 15,000 customer orders at the mill and the manager has a new John Deere in mind as a company car, so he hopes that there is an increase of 15% in customer orders for next year. If the manager hires fourteen workers, what is the capacity cushion?

A. 6.9%

B. 8.8%

C. 8.2%

D. 7.6%

Reference no: EM131566446

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