Question

In Year 4 of the simulation you should launch a new bike into either the Road Bike Market or the Youth Bike Market. Road Bikes require 1.0 SCU per bike to produce Youth Bikes require 0.25 SCU per bike to produce How much spare Factory Capacity would you need if you believe you can sell 30,000 Youth Bikes (ignoring the impact of Wastage)?

Answer 1

Answer:

Spare Factory Capacity for youth bike = 7,500 SCU

Explanation:

Given:

Road Bikes require = 1.0 SCU per bike

Youth Bikes require = 0.25 SCU per bike

Total number of Youth bike = 30,000 units

Spare Factory Capacity for youth bike = ?

Computation of spare Factory Capacity for youth bike:

Spare Factory Capacity for youth bike = Total number of Youth bike × Youth Bike,s SCU per bike

Spare Factory Capacity for youth bike = 30,000 × 0.25 SCU

Spare Factory Capacity for youth bike = 7,500 SCU