Action Motor Sports Company uses a machine that can produce 100 razor scooters per hour. The firm operates 12 hours per day, five days per week. Due to regularly scheduled preventive maintenance, the machines will have to be down 5% of the available time. Based on experience with other products produced during preventive maintenance, the firm achieved an efficiency level for the wheels of 87%. The company's internal utilization goal is 75%.

A. What is the firms effective capacity?

4900

5700

6000

5636

6240

B. What is the expected actual weekly output of scooters for this company, based on effective capacity?

5700

4959

5246

6000

95

C. Which of the following is true?

The maximum weekly theoretical capacity is 5,600 razor scooters

Effective capacity is 6,000 razor scooters

Action Motor Sports has achieved a utilization goal of >= 90%

Action Motor Sports has achieved their utilization goal of => 75%

Action Motor Sports should be able to fulfill average customer orders for 5,800 motor scooters per week.

D. If the company received an order for 10,000 razor scooters per week and switched to a 18-hour daily operation, is it likely they would be able to fulfill demand, based on effective capacity?

Yes, because design capacity is above 9,000.

Yes, because design capacity is far enough over the demand of 10,000 to accommodate the order

No. because utilization is below the aoal of 75%

Yes. but onlv if the companv can decrease the down time from 5% to 2%

No. because the 5% down time will prohibit the company from producing the 10.000 razor scooters