Question

Kennywood​ Inc., a manufacturing​ firm, is able to produce 1,500 pairs of pants per​ hour, at maximum efficiency. There are three eight−hour shifts each day. Due to unavoidable operating​ interruptions, production averages 850 units per hour. The plant actually operates only 28 days per month. Based on the current​ budget, Kennywood estimates that it will be able to sell only 504,000 units due to the entry of a competitor with aggressive marketing capabilities. But the demand is unlikely to be affected in future and will be around 516,000. Assume the month has 30 days. What is the theoretical capacity for the​ month?

Answer 1

1,080,000 units

Step-by-step explanation:

Given the below information;

Theoretical capacity per hour = 1,500 units per hour

Hours per shift = 8 hours

Number of shift in each day = 3

Number of days per month = 30

Theoretical capacity for the month

= Theoretical capacity per hour × number of shift per day × hours per shift/day × number of days in a month

= 1,500 × 3 × 8 × 30

= 1,080,000 units