## Company is producing transmission handle of 200,000 units per day working 6 days in a week.

### management

##### Description

1.     Company is producing transmission handle of 200,000 units per day working 6 days in a week.  The effective capacity is 173,256 units per day but the actual output is 165,587 units per day. Compute the design capacity per week, utilization per month and efficiency per day. What if the efficiency is 78.5%, what is the expected output in a day? Explain the efficiency result per day. (12 points)

2.     Company wants to determine the minimum \$ volume and unit volume needed at its new facility to break-even. Shown below is the Income Statement of Company for the month of September. They produced 40,000 units for this month. (15 points)

Company

Income Statement

For the month ended September 30, 2018

Sales                                                                                                   \$4,000,000

Less:

Variable Costs                                                       \$1,600,000

Fixed Costs                                                                 900,000        2,500,000

Net Income                                                                                             \$1,500,000

Compute the following:

1.     Break-Even Point in Sales

2.     Break-Even Point in Units

3.     Company has a plant for meat processing. The factory can produce 4,700 packs per day. The effective capacity is 4,300. The actual output is 4,076 packs. The factory has 5 production lines which operate 6 days per week (6th day is half-day), with one 8-hour shift per day.  Compute for the following: (12 points)

·        Design Capacity in a month

·        Efficiency per day

·        Utilization per week and month

·        Evaluate and explain the results of the Utilization per month