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1- Aprocess a mently services an average of 50 customers per day. Observations in recent weekshowhaitsutilizationabout Opercentllowingjust 10percemapacity cushion If demand is expected to be

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1- Aprocess a mently services an average of 50 customers per day. Observations in recent weekshowhaitsutilizationabout Opercentllowingjust 10percemapacity cushion If demand is expected to be 75 percent of the current level in five years and management wants to have a capacity cushion of just 5 percent, what capacity requiremehouldeplanned 2- Up Up and Away is a producer of kites and wind socks. Relevant data on a bottleneck operationtheshopontheipcomingcalearegiveinthefollowingble Item Kites Wind Socks Demarforecast 30000nityear 12000nityear Lotize 20units 70units Standaprocessitime |0.shouunit l houunit Standardtutime 3hourint 4hourbot The shop works two shifts per day, 8 hours per shift, 200 days per year. Currently, the company operates four machines, and desires a 25 percent capacity cushion Howmany machines should be purchased to meet the uponning year's demand without resorting to anyshorterncapacity lutions 3- Rode Bothas is considering a capacity expansion of its supermarket. The landowner will build the ardition to suit in return for $100 upon completion and a 5-year lease. The increase in rent for the addition is $10000 per month. The annual sales projected through your 5 follow The ament effective caparity is equivalent to 500100 austomas per year. Assumea2 percent pretax profit on sales. Yar 2 3 4 5 Customers 560000 600000 685000 700000 715000 Average sales $50 $63 $56 $60 $64 percustomer If Roche expands its capacity to save 710100 customas par year now (end of year 0) what are the projected annual incremental pretax cash flows attributable to this

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