Figure 3-3
The Sandoval Company has four process engineers that are each able to process 1,500 design changes. Last year 5,250 design changes were produced by the four engineers. Each engineer is paid $60,000 per year
-Refer to Figure 3-3. What is the unused capacity in dollars?
A) $60,000
B) $30,000
C) $240,000
D) $15,000

Question

Quizplus · Accepted Answer

Each engineer can process 1,500 design changes, giving a total capacity of 6,000 design changes for all four engineers. However, only 5,250 design changes were produced last year, leaving 750 design changes unused. At $60,000 per engineer, the unused capacity would be $30,000 ($60,000/2 x 750). Therefore, option B is correct.

Figure 3-3 The Sandoval Company Has Four Process Engineers That Are Each