Considering adding new plant for additional capacity

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Reference no: EM132211977

1. A pottery maker is considering adding a new plant for additional capacity. The proposed facility will have fixed costs of $9500 per month and variable costs of $0.70 per unit produced. Each piece of pottery is sold to retailers at a price that averages $0.97. What profit would be realized on a monthly volume of 91500 units?

2. A loan processing operation has a design capacity of 64 loans per day and an effective capacity of 52 loans per day. What is its utilization if it processes an average of 44 loans per day? (Your answer should be a percentage with one decimal point.)

3. Should Iceland seek membership in the EU? Iceland already belongs to the EFTA and the Nordic Passport Countries? What are these organizations and what does membership mean to Iceland?

Reference no: EM132211977

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