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allsm [11]
3 years ago
9

Joe's Tasty Burger has determined that its production facility has a design capacity of 400 hamburgers per day. The effective ca

pacity, however, is 250 hamburgers per day. Lately Joe has noticed that output has been 300 hamburgers per day. Compute both design and effective capacity utilization measures. What can you conclude?
Business
1 answer:
Nat2105 [25]3 years ago
3 0

Answer:

Design Capacity Utilization= 75%

Production efficiency = 120%

Explanation:

Okay, so the question is to determine both the design and the effective capacity utilization measures and make a conclusion from there

1. The Capacity Utilization = The Actual Output/ Design Capacity

Actual Output= 300 hamburgers a day

Design Capacity = 400 Hamburgers a day

Therefore Capacity Utilization = 300 hamburgers/400 hamburgers x 100

= 75%

2. The Efficiency of the production = The Actual Output / The Effective Capacity

Actual Output = 300 Hamburgers a  day

Effective Capacity = 250 hamburgers

= 300 Hamburgers/ 250 Hamburgers x 100

= 120%

Conclusion

First we see that the actual utilization of capacity is more better than the effective capacity and this is good. Also, the Design Capacity is higher than the actual capacity utilization which should also be expected as design capacity is a calculation based on ideal conditions that may be not realistic in real life conditions.

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<h3>What is product mix?</h3>

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Type the correct answer in the box. Spell all words correctly. In which book of accounts do businesses record their daily financ
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6 0
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An income statement for Sam's Bookstore for the first quarter of the year is presented below: Sam's Bookstore Income Statement F
yawa3891 [41]

Answer:

The contribution margin for Sam's Bookstore for the first quarter is 0.84 or 84 %

Explanation:

Contribution Margin = Contribution ÷ Sales

Where,

<em>Contribution = Sales - Variable Costs</em>

where,

Sales :

Sales = $ 900,000

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                                      = 18,000 books

Variable Costs Calculation :

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Variable selling expenses ($5 × 18,000 books)               $90,000

Variable administrative expenses( 4% × $ 900,000)       $36,000

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Therefore,

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7 0
3 years ago
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