Question

Christopher's Cranks uses a machine that can produce 100 cranks per hour. The firm operates 12 hours per day, five days per week. Due to regularly scheduled preventive maintenance, the firm expects the machine to be running during approximately 95% of the available time. Based on experience with other products, the firm expects to achieve an efficiency level for the cranks of 85%. What is the expected weekly output of cranks for this company?
A. 6783
B. 5700
C. 969
D. 5100
E. 4845

Answer 1

Answer:

Actual output would be 4,845 cranks

Explanation:

Production per week = Production per hour × Hours per day × Production per day

                                   = 100 × 12 × 5

                                   = 6,000 cranks

Maintenance adjusted output = Production per week × Available time

                                                  = 6,000 × 95%

                                                  = 5,700 cranks

Actual output = Maintenance adjusted output  × Efficiency level

                       = 5,700 × 85%

                      = 4,845 cranks