Complete Question:
Determine the utilization and the efficiency for each of these situations:
a. A loan processing operation that processes an average of 7 loans per day. The operation has a design capacity of 10 loans per
day and an effective capacity of 8 loans per day.
b. A furnace repair team that services an average of four furnaces a day if the design capacity is six furnaces a day and the
effective capacity is five furnaces a day.
c. Would you say that systems that have higher efficiency ratios than other systems will always have higher utilization ratios than
those other systems? Explain.
Explanation:
It's not (true) actually. Whether the design capacity is comparatively (high), the utilisation could be (low) even though the efficiency was (high).
Utilisation = Output / Design capacity = 
x 100%
Efficiency = Output / Effective capacity = 
Utilisation = 
Efficiency = 
U = 1000/2000
e = 1000/1000
Answer:
Incubators
Explanation:
In north american context the incubators refers to small places for business provided on low rent.
Basically in the given context, the space for new shops for businesses is given by state and city government, this clearly states that because of involvement of government the prices of such place would be really low as compare to private rental spaces.
This provides that because of this facility incubators will grow.
Answer:
1. groups costs into meaningful buckets that are then distributed based on the activity or product they support.
Explanation:
Activity based costing basically categorizes various overheads into different activities, that leads to charge of overheads based on different activities.
In this manner overheads that shall be charged on some standard products based on the activities involved is charged accordingly, and not based on standard overhead allocation rate.
Basically the overheads are divided into various activities and then distributed to each product based on the volume of activity in the manufacturing process of such activity.
Answer:
The most the firm can spend to lease the new equipment without losing money=$75,000
Explanation:
The point at which the revenue in terms of sales equals the cost is the break-even point. This can be expressed as;
R=C
where;
R=revenue from sales
C=cost
And;
R=P×N
where;
R=revenue from sales
P=price per unit
N=number of units
In our case;
P=$7.5 per unit
N=10,000 units
replacing;
R=7.5×10,000=$75,000
Total revenue from sales=$75,000
C=p×n
where;
p=cost per unit
n=number of units
In our case;
p=$5
n=unknown
replacing;
C=5×n=5 n
At break-even point, R=C;
5 n=75,000
n=75,000/5=15,000
The break-even cost=5×15,000=$75,000
The most the firm can spend to lease the new equipment without losing money=$75,000
Answer:
A) 200 units
Explanation:
mean daily demand = 20 calculators
standard deviation = 4 calculators
lead time = 9 days
z-critical value (for 95% in-stock probability) = 1.96
normal consumption during lead-time:
= mean demand × lead time
= 20 × 9
= 180 calculators
safety stock = z × SD × √L
= 1.96 × 4 × √9
= 1.96 × 4 × 3
= 23.52 calculators
reorder point = normal consumption + safety stock
= 180 + 23.52
= 203.52 calculators
