Table 41
the Union Manufacturing Company Is Producing Two Types of of Products

Multiple Choice

Table 4.1
The Union Manufacturing Company is producing two types of products: A and B.
The demand forecasts, batch size, and time standards follow:
$$\begin{array} { l | c | c } & \text { Product A } & \text { Product B } \\\hline \text { Demand forecast (units/yr) } & 1000 & 4000 \\\text { Batch size (units/batch) } & 20 & 10 \\\text { Processing time (hr/unit) } & 3.2 & 4.5 \\\text { Setup time (hr/batch } & 0 & 20\end{array}$$
Both products are produced at the same operation called Mark I.
-Use the information in Table 4.1.The company works 250 days per year and operates two shifts,each covering 8 hours.If a 15 percent capacity cushion is maintained,how many hours of capacity can the company expect from each of its Mark I machines?

A) less than 3000
B) between 3000 and 3500
C) between 3501 and 4000
D) more than 4000