A manufacturing cell has the theoretical capability of producing 55,000 microchips per quarter. The conversion cost per quarter is $30,000. There are 5,000 production hours available within the cell per quarter. The theoretical velocity per hour is:
A)15 units.
B)6 units.
C)11 units.
D)8 units.

Question

Quizplus · Accepted Answer

The theoretical velocity per hour can be calculated as follows:

- First, we need to calculate the total number of production hours available per microchip:

Total production hours per quarter = 5,000 hours per quarter 
    Total production hours per microchip = 5,000 hours per quarter / 55,000 microchips per quarter 
                                        = 0.09091 hours per microchip

- Next, we need to calculate the theoretical velocity per hour:

Velocity per hour = 1 / Total production hours per microchip 
                     = 1 / 0.09091 hours per microchip 
                     = 11 units per hour

Therefore, the best choice is C.

A Manufacturing Cell Has the Theoretical Capability of Producing 55,000