For output to equal projected demand, what is the minimum number of workstations needed?
A)2
B)2.8
C)3
D)4
E)5

Question

Quizplus · Accepted Answer

To match the projected demand, the output must equal the labor rate multiplied by the number of workstations. The labor rate is 0.8 since each worker can produce 80% of the projected demand. 
Let's assume that the projected demand is 100 units.

At one workstation, the output is 0.8 x 1 = 0.8 x 100 = 80 units. This is insufficient.

At two workstations, the output is 0.8 x 2 = 1.6 x 100 = 160 units. This is more than the projected demand.

At three workstations, the output is 0.8 x 3 = 2.4 x 100 = 240 units. This is greater than the projected demand, but not by an excessive amount. Therefore, three workstations are the minimum required to produce the projected demand.

Therefore, the best choice is C) 3.

For Output to Equal Projected Demand, What Is the Minimum