Question

In a job shop, effective capacity is only 80 percent of design capacity. Actual output is 75 percent of effective capacity. How many units of design capacity are needed to achieve an actual output of 24 jobs per week?

A) 20 design capacity units
B) 24 design capacity units
C) 30 design capacity units
D) 32 design capacity units

Answer 1

To achieve an actual output of 24 jobs per week, 40 units of design capacity are needed.

Step-by-step explanation:

To calculate the number of units of design capacity needed to achieve an actual output of 24 jobs per week, we need to go step by step. First, we need to find the effective capacity, which is 80% of the design capacity. Let's call the design capacity 'x'.

So, the effective capacity would be 0.8x. Now, we are given that the actual output is 75% of the effective capacity. Therefore, the actual output is 0.75(0.8x) = 0.6x.

Since we know the actual output is 24 jobs per week, we can set up the equation 0.6x = 24 and solve for 'x'.

0.6x = 24
x = 24/0.6
x = 40

Therefore, 40 units of design capacity are needed to achieve an actual output of 24 jobs per week.