A company's production facility,consisting of two identical machines,currently caters only to product A.The annual demand for the product is 4000 units.Management has now decided to introduce another product,B,which uses the same facilities as that of product A.Product B has an annual demand of 2000 units.In view of the uncertainties involved in producing two products,management desires to have an overall 10 percent capacity cushion.Given the following additional information,how many more machines are required? (Assume 8 hours/shift,2 shifts/day,250 days/year,and that no overtime is allowed) . 
A) No additional machines are necessary.
B) One additional machine is necessary.
C) Two additional machines are necessary.
D) More than two additional machines are necessary.
Correct Answer:
Verified
Q67: Table 6.4
Mr.Lee is considering a capacity expansion
Q68: Table 6.6
Burdell Labs is a diagnostic laboratory
Q69: The Northern Manufacturing Company is producing products
Q70: Innovative Inc.is experiencing a boom for the
Q71: Sleep Tight Motel has the opportunity to
Q73: Table 6.4
Mr.Lee is considering a capacity expansion
Q74: Table 6.3
The North Bend Manufacturing Company is
Q75: John Owen owns a drugstore that is
Q76: George P.Burdell owns a hot tub store
Q77: Table 6.5
The T.H.King Company has introduced a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents