Figure 3-3 Mork Company has four process engineers that are each able to process 1,500 design changes.Last year 5,250 design changes were produced by the four engineers.Each engineer is paid $60,000 per year.
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Refer to Figure 3-3.Calculate the unused capacity.
A) 750 change orders
B) 1,375 change orders
C) 4,000 change orders
D) 2,000 change orders

Question

Quizplus · Accepted Answer

Unused capacity = (4 engineers x 1,500 change orders per engineer) - 5,250 change orders = 6,000 change orders - 5,250 change orders = 750 change orders

Figure 3-3 Mork Company Has Four Process Engineers That Are