The following information relates to Paternus Company: Sales revenue$10,000,000 Contribution margin 4,000,000 Net Income 1,000,0
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Answer:
Check the explanation
Explanation:
Coaching
Implied utilization
Arrival of Elows = 70 per hour
Coaching time = 10 mins per Elow
Total Workload= 70*10 = 700 coaching mins
Available coaching hours = 11*60 = 660 mins
Implied utilization = Total demand / Available capacity
= 700/660
= 1.0606
Maximum flowrate = 660/10 = 66 Job seekers per hour ( or Elows per hour)
Actual flowrate = 66 Job seekers per hour (as this process is bottleneck)
Interview process
Total workload = 70*15+30*30
=1950 mins
Available capacity = 40*60 = 2400 mins
Implied Utilization = 1950/2400 = 0.8125
Expected interview time = (0.70*15+0.30*30)
Maximum flow rate = 2400/(0.70*15+0.30*30)
=123.0769 job seekers per hour
Actual flow rate:
Actual arrival rate of Elows (from Coaching process) =66 Elows per hour
So, Total arrivals =66+30 = 96
Since, this process has capacity more than demand
Actual flow rate = 96 job seekers per hour
kindle check the attached image below see the diagram explaming .
