The Sandoval Company has four process engineers that are each able to process 1,500 design changes. Last year 5,250 design changes were produced by the four engineers. Each engineer is paid $60,000 per year. What is the unused capacity in dollars?
A)$60,000
B)$30,000
C)$240,000
D)$15,000

Question

Quizplus · Accepted Answer

Each engineer can process 1,500 design changes, so the total capacity of the four engineers is 6,000 design changes. Last year, only 5,250 design changes were produced, meaning that there is unused capacity of 750 design changes. Each engineer is paid $60,000 per year, so the unused capacity in dollars is 750 x $60,000 / 6,000 = $7,500. Since this is the unused capacity for all four engineers, the total unused capacity is $7,500 x 4 = $30,000. Therefore, the best choice is (B).

The Sandoval Company Has Four Process Engineers That Are Each