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A firm wishes to determine the efficiency and utilization of a work center coposed of 3 machines each working 16 hours per day for 5 days a week. A study undertaken by the materials management department found that over the past year the work center was available for work 12,000 hours, work was actually being done for 10,000 hours, and work was performed 11,480 standard hours. Calculate the utilization, efficiency, and demonstrated weekly capacity. Assume a 50-week year.
A product is currently made in a job shop, where fixed costs are $4,500 per year and variable cost is $10 per unit. The firm sells the product for $70 per unit. What is the break-e
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