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2.0 Wadi Manufacturing Company is able to produce 100 electric chargers per hour at maximum efficiency. However, production averages 75 units per hour due to
2.0 Wadi Manufacturing Company is able to produce 100 electric chargers per hour at maximum efficiency. However, production averages 75 units per hour due to machine set-ups and other operating interruptions. Wadi actually operates only 26 days out of 30 days per month for 20 hours per day. Based on the 2021 budget, the company estimates that it will be able to sell only 29,000 units per month due to the COVID economy slow-down. The CEO says that the demand is unlikely to be affected in future and will be around 38,000 units. (a) Determine each capacity level as: (0) The theoretical capacity (ii) The practical capacity (iii) The master budget normalization capacity (b) Explain how the choice of capacity levels listed above makes a difference to the company? Support your answer with calculations
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