Kennywood Inc., a manufacturing firm, is able to produce 1,000 pairs of pants per hour, at maximum efficiency. There are three eight-hour shifts each day. Due to unavoidable operating interruptions, production averages 825 units per hour. The plant actually operates only 27 days per month. Based on the current budget, Kennywood estimates that it will be able to sell only 503,000 units due to the entry of a competitor with aggressive marketing capabilities. But the demand is unlikely to be affected in future and will be around 518,000. Assume the month has 30 days. What is the theoretical capacity for the month?

Question

Quizplus · Accepted Answer

Theoretical capacity is 720,000 units (1,000 × 3 × 8 × 30).