Corazon Manufacturing Company has a purchasing department staffed by five purchasing agents. Each agent is paid $12,000 per year and is able to process 2,000 purchase orders. Last year, 8,900 purchase orders were processed by the five agents.

Required:

1. Calculate the activity rate per purchase order.

per purchase order

2. Calculate, in terms of purchase orders, the:

a.	Total activity availability	fill in the blank 2 purchase orders
b.	Unused capacity	fill in the blank 3 purchase orders

3. Calculate the dollar cost of:

a.	Total activity availability	$fill in the blank 4
b.	Unused capacity	$fill in the blank 5

4. Express total activity availability in terms of activity capacity used and unused capacity. Express total activity availability in terms of activity capacity used and unused capacity. Purchase orders

Total activity availability		Activity capacity used		Unused capacity
fill in the blank 6	=	fill in the blank 7	+	fill in the blank 8

Dollars cost

Total activity availability		Activity capacity used		Unused capacity
$fill in the blank 9	=	$fill in the blank 10	+	$fill in the blank 11

5. What if one of the purchasing agents agreed to work half time for $6,000?

a. How many purchase orders could be processed by four and a half purchasing agents?

fill in the blank purchase orders

b. What would unused capacity be in purchase orders?

fill in the blank purchase orders