Figure 21-5
at the Beginning of This Year, Sammie Company

Figure 21-5
At the beginning of this year, Sammie Company installed a JIT purchasing and manufacturing system. The following information has been gathered about one of the company's products: $\begin{array}{lr}&\text { Current Year }\\\text { Theoretical annual capacity } & 2,000 \\\text { Actual production } & 1,800 \\\text { Production hours available } & 1,000 \\\text { Scrap (kgs) } & 200 \\\text { Materials used (kgs) } & 6,400 \\\text { Actual cost per unit } & 14 \\\text { Days of inventory } & 3 \\\text { Number of defective units } & 30\end{array}$
-Refer to Figure 21-5. Sammie's theoretical cycle time for this year would be

A) 2.00 hours per unit.
B) 1.80 hours per unit.
C) 0.56 hours per unit.
D) 0.50 hours per unit.