Prob. 9.24, p. 384 (2 Pts) Capacity management. The following information is available concerning a oneproduct company:

Sales: 10,000 units a year.

The machine complex can operate a maximum of 8 hours a day.

The company can operate a maximum of 250 days a year

. The maximum production per day is 24 units.

The company is capable of processing 2,000 kg of raw material a year. One kg of raw materials yields two finished products.

One worker produces one product per hour. A maximum of six workers can be employed. The working time per day is 8 hours. The normal capacity utilization is 100% of maximum capacity.

1. Which production factor is a bottleneck? What is the normal capacity utilization for this company?

2. Calculate the cost per product.