Operating capacity for the next six months

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Reference no: EM132281228

Your firm has a plant that can produce a maximum of 12,000 units of a product each month when operating at full fixed capacity. To meet demand for the next six months, the leadership team decided to schedule only one working shift producing a total of 7,500 units each month. What does this imply about operating capacity for the next six months?

a. Operating capacity will be 62.5%.

b. Operating capacity will be affected by stock outs.

c. Operating capacity will be 4,500 units.

Reference no: EM132281228

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