Finding the under capacity scheduling level

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Reference no: EM1378331

Question:A chemical corporation manufactures an average of seventy gallons of its cleaning solvent per hour around the clock (24 hours/day). A consumer wants to sign a contract calling for daily delivery of 1,500 gallons of the solvent. If the chemical company decides to produce for this customer only, what will be its under-capacity scheduling level, expressed as a decimal fraction?

a. 2.14
b. 1.12
c. 0.89
d. 0.75

Reference no: EM1378331

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