At the Beginning of the Current Year,Peters Company Installed a JIT

Multiple Choice

At the beginning of the current year,Peters Company installed a JIT purchasing and manufacturing system.The following information has been gathered about one of the company's products: $$\begin{array} { l r } \text { Theoretical anual capacity } & 2,000 \\\text { Actual production } & 1,800 \\\text { Production hours avalable } & 500 \\\text { Actual conversion cost per hour } & \$ 7\end{array}$$
- What is the theoretical velocity per hour?

A) 1.0 units
B) 1.1 units
C) 3.6 units
D) 4.0 units