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Answer the Following Question(s)using the Information Below

Question 20

Multiple Choice

Answer the following question(s) using the information below.A manufacturing firm is able to produce 2,000 pairs of shoes per hour, at maximum efficiency.There are three eight-hour shifts each day.Production is actually 1,600 pairs of shoes per hour due to unavoidable operating interruptions.The plant is expected to run every day but was only able to operate for 27 days in September.
-________ provides the denominator-level capacity based on demand for more than one budget cycle.


A) Practical capacity
B) Theoretical capacity
C) Master-budget capacity utilization
D) Normal capacity utilization
E) Supply capacity

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