1) 2) 3) A manufacturing firm is able to produce 1,000 pairs of shoes per hour,

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2)

3) A manufacturing firm is able to produce 1,000 pairs of shoes per hour, at maximum efficiency. There are three eight-hour shifts each day. Due to unavoidable operating interruptions, production averages 800 units per hour. The plant actually operates only 27 days per month.

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Greene Manufacturing incurred the following expenses during 20X5 What will be the breakeven point in units if absorption costing is used? From the perspective of long-run A normal capacity utilization for benchmarking purposes B theoretical capacity for performance evaluation C practical capacity for pricing decisions D master-budget capacity utilization to highlight unused capacity 3) A manufacturing firm is able to produce 1,000 pairs of shoes per hour, at maximum efficiency. There are three eight-hour shifts each day. Due to unavoidable operating interruptions, production averages 800 units per hour. The plant actually operates only 27 days per month. What is the practical capacity fro the month of April? Thank you so much

Explanation / Answer

1) Option "b" is the correct answer.. Break even point = Fixed cost / contribution per unit contribution per unit = 100 -20 = $80 fixed cost = 45000+35000 = $80000 Break even point = $80000 / 80 = 1000 units 2) option "A" is the correct answer.. Normal capacity = prcatiacl capacity - loss of productivity capacity due to external factors 3) option "B" the correct answer.. here installed capacity = 30 *3*8 = 720 per hour = 100o pairs = 720*1000 =720000 units can prduce , but due to these loss and delay firm can produce practical capacity = [installade caapcity - loss of capcit due to problems] = 27*3*8=648 hours delayed hours = 1000-800 units=200 units loss = 200*648=129600 other loss due to week off = 3*3*8=72 = 72 *1000 hours (full loss) =72000 ther fore practical capacity = 720000-129600-72000 =518400 units

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