Prob. 9.24, p. 384 (2 Pts) Capacity management. The following information is available concerning a oneproduct company:
• Sales: 10,000 units a year.
• The machine complex can operate a maximum of 8 hours a day.
• The company can operate a maximum of 250 days a year
. • The maximum production per day is 24 units.
• The company is capable of processing 2,000 kg of raw material a year. One kg of raw materials yields two finished products.
• One worker produces one product per hour. A maximum of six workers can be employed. The working time per day is 8 hours. The normal capacity utilization is 100% of maximum capacity.
1. Which production factor is a bottleneck? What is the normal capacity utilization for this company?
2. Calculate the cost per product.