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#4 Allbirds can produce 900 pairs of sneakers per hour at maximum efficiency There are two 12 -hour shifts each day Due to unavoidable operating
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Allbirds can produce 900 pairs of sneakers per hour at maximum efficiency There are two 12 -hour shifts each day Due to unavoidable operating interruptions, production averages 500 units per hour. The plant actually operates only 26 days per month. Based on the current month's budget, Allbirds estimates that it will be able to sell only 306,000 units due to the entry of a competitor with high personalization capabilities. But demand is unlikely to be affected in future and will average around 311,000 units each month: Assuming 30 days per month, calculate Alibirds' monthly (1) theoretical capacity, (2) practical capacity, (3) normal capacity utilization, and (4) master-budget capacity utilization Step by Step Solution
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