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At the Beginning of 2018, Vibgyor Company Installed a Just-In-Time

Question 86

Multiple Choice

At the beginning of 2018, Vibgyor Company installed a just-in-time (JIT) purchasing and manufacturing system. The following information has been gathered about one of the company's products:  Theoretical annual capacity 4,200 units  Actual production 1,600 units  Production hours available 600 hours  Actual conversion cost per hour $15\begin{array}{lr}\text { Theoretical annual capacity } & 4,200 \text { units } \\\text { Actual production } & 1,600 \text { units } \\\text { Production hours available } & 600 \text { hours } \\\text { Actual conversion cost per hour } & \$ 15\end{array}
The theoretical velocity per hour is:


A) 9 units.
B) 3 units.
C) 2 units.
D) 7 units.

Correct Answer:

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