Consider the following information for the manufacturing cell of Stripes Company: Maximum units produced in a quarter 250,000 units Actual units produced in a quarter 200,000 units Productive hours in a quarter 50,000 hours Compute the theoretical velocity and the actual velocity in units per hour.

Theoretical velocity = 5 units per hour.

Actual velocity = 4 units per hour.

Explanation:

Based on the information given in the question, the theoretical velocity will be:

Firstly, we'll calculate the theoretical cycle time which will be:

= (50,000 hours x 60 minutes per hour) / 250,000 units

= 12 minutes per unit

Actual cycle time will be:

= (50,000 hours x 60 minutes per hour) / 200,000 units

= 15 minutes per unit

The theoretical velocity:

= 60 minutes / 12 minutes

= 5 units per hour.

2. The e actual velocity in units per hour:

= 60 minutes per hour / 15 minutes per unit

= 4 units per hour

answer; is usually (less than) the socially optimal level of consumption;

the answer is a.

by: nicholas dooley