Answer all three of the following Roman Numeral Questions (I,II, III). Equal credit.
I. Suppose a company has a design maximum output of 200. Itsactual output is 150 and its efficiency is 75%. Calculate itseffective output and its capacity utilization.
II. Suppose a company has a fixed cost of $200,000 and avariable cost per unit of $14. It sells its product for $19.
a. Calculate its break-even level of output.
b. Calculate how much it must produce to make $100,000, assumingit can sell it all. Extra credit – 15 points. If it can outsource,and buy the product wholesale from a distributor at $16 each, overwhat level of output should it buy from the wholesaler, and overwhat level should it produce on its own?
III. If a company knows that its new employees have aseventy-five percent learning rate, and the first time they performthe task it takes 200 hours.
a. How long will it take to perform the eighth repetition?
b. How long will it take to perform the first eigth repetitions,cumulative?
