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Problem 1: (4 Points) A furnace repair team that services an average of four furnaces a day if the design capacity is six furnaces a
Problem 1: (4 Points) A furnace repair team that services an average of four furnaces a day if the design capacity is six furnaces a day and the effective capacity is five furnaces a day. a. Calculate the Utilization b. Calculate the Efficiency Problem 2: (12 Points) A producer of pottery is considering the addition of a new plant to absorb the backlog of demand that now exists. The primary location being considered will have fixed costs of $9,200 per month and variable costs of 70 cents per unit produced. Each item is sold to retailers at a price that averages 90 cents. a. What volume per month is required in order to break even? b. What profit would be realized on a monthly volume of 61,000 units? 87,000 units? c. What volume is needed to obtain a profit of $16,000 per month? d. What volume is needed to provide a revenue of $23,000 per month? Find the capacity of this system
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