Question

6. Micki Manufacturing’s market study suggests that 1.2 million novelty dolls can be sold
per year through carnivals and county fairs. If an assembly line at maximum capacity can
produce 15,000 dolls a month per shift, can the company meet its sales goal for the year if
it runs only two shifts?

7. The recently started law firm of Dewey, Cheetum, and Howe has three partners. Between
“rain-making” work to get business and administrative duties, the partners believe that the
average utilization rate is only 40 percent at best. At a billing rate of $200 per hour and a
forty-hour work week, what is the maximum revenue per week?

Answer 1

6: Production in 2 shifts = No of shifts*Production per month* 12 months

= 2*15000*12

= 360000

The goal cannot be met in 2 shifts.

7: Maximum revenue = Billing rate*40 hours per week * No of partners * Utilization rate

= 200*40*3*40%

= $9600