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

Multiple Choice

At the beginning of the current year,Smith Company installed a JIT purchasing and manufacturing system.The following information has been gathered about one of the company's products. $\begin{array}{lr}\text { Theoretical annual capacity } & 4,000 \\\text { Actual production } & 3,600 \\\text { Production hours available } & 2,000 \\\text { Actual cost per unit } & \$ 28\end{array}$

-What is the theoretical velocity per hour?

A) 0.5 units
B) 0.55 units
C) 1.8 units
D) 2.0 units