Answer the following questions using the information below:
A manufacturing firm is able to produce 2,000 pairs of sneakers per hour, at maximum efficiency. There are three eight-hour shifts each day. Due to unavoidable operating interruptions, production averages 1,600 units per hour. The plant actually operates only 27 days per month.
-What is the theoretical capacity for the month of April?
A)2,000,000 units
B)1,440,000 units
C)1,036,800 units
D)480,000 units

Question

Quizplus · Accepted Answer

The theoretical capacity is the maximum number of units that can be produced in a given period of time. In this case, the theoretical capacity for the month of April is 2,000 units per hour x 8 hours per shift x 3 shifts per day x 27 days per month = 1,440,000 units.

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