accounting help

LO5–1 ( Questions 1, 2,3, 4 only Excel only separate sheets) Not in Word!!
1. A manufacturing shop is designed to operate most effi ciently at an output of 550 units per
day. In the past month the plant produced 490 units. What was its capacity utilization rate
last month?
2. A company has a factory that is designed so that it is most effi cient (average unit cost
is minimized) when producing 15,000 units of output each month. However, it has an
absolute maximum output capability of 17,250 units per month, and can produce as little
as 7,000 units per month without corporate headquarters shifting production to another
plant. If the factory produces 10,925 units in October, what is the capacity utilization rate
in October for this factory?
3. Hoosier Manufacturing operates a production shop that is designed to have the lowest
unit production cost at an output rate of 100 units per hour. In the month of July, the company
operated the production line for a total of 175 hours and produced 16,900 units of
output. What was its capacity utilization rate for the month?
LO5–2
4. AlwaysRain Irrigation, Inc., would like to determine capacity requirements for the next
four years. Currently two production lines are in place for making bronze and plastic
sprinklers. Three types of sprinklers are available in both bronze and plastic: 90-degree
STRATEGIC CAPACITY MANAGEMENT chapter 5 125
nozzle sprinklers, 180-degree nozzle sprinklers, and 360-degree nozzle sprinklers. Management
has forecast demand for the next four years as follows:
Yearly Demand
1 (in 000s) 2 (in 000s) 3 (in 000s) 4 (in 000s)
Plastic 90
Plastic 180
Plastic 360
Bronze 90
Bronze 180
Bronze 360
32
15
50
7
3
11
44
16
55
8
4
12
55
17
64
9
5
15
56
18
67
10
6
18
Both production lines can produce all the different types of nozzles. The bronze machines
needed for the bronze sprinklers require two operators and can produce up to 12,000
sprinklers. The plastic injection molding machine needed for the plastic sprinklers requires
four operators and can produce up to 200,000 sprinklers. Three bronze machines
and only one injection molding machine are available. What are the capacity requirements
for the next four years? (Assume that there is no learning.)

Plastic 360
Bronze 180
Bronze 360
32
15
50
11
6
15
44