A manufacturing cell has the theoretical capability of producing 40,000 microchips per quarter.The conversion cost per quarter is $25,000.There are 4,000 production hours available within the cell per quarter. What is the theoretical velocity per hour?
A)2.24 units
B)10.00 units
C)16.00 units
D)25.00 units

Question

Quizplus · Accepted Answer

The theoretical capacity per hour can be found by dividing the theoretical capacity per quarter by the number of hours available:
40,000 / 4,000 = 10 units per hour
Therefore, the best choice is B, with a theoretical velocity per hour of 10.00 units.

A Manufacturing Cell Has the Theoretical Capability of Producing 40,000