Assignment:
1. Efficiency is defined as the ratio of
A. actual output to effective capacity
B. actual output to design capacity
C. design capacity to effective capacity
D. effective capacity to actual output
E. design capacity to actual output
2. The ratio of actual output to design capacity is:
A. design capacity
B. effective capacity
C. actual capacity
D. efficiency
E. utilization.
3. The owner of "Firewood To Go" is figures it will cord of split wood for $125. If, machine, wood splitter which sels for $50,000. He cost an additional $100 per cord to purchase and split wood with this machine, while he can sell each 12s , for this machine, design capacity is 50 cords per day, effective capacity is 40 cords buying a day, and actual output is expected to be 32 cords per day, what would be its efficienay?
A. 100 percent
B. 80 percent
C. 75 percent
D. 70 percent
E. 0 percent
4. The owner of a greenhouse and nursert is considering whether to spend $6,000 to acquire the licensing rights to grow a new variety of rosebus, which she could then sell for $6 each. Per-unit variable cost would be $3. What would the profit be if she were to produce and sell 5,000 rosebushes?
A. $0
B. $9,000
C. $15,000
D. $10,000
E. $30,000
5. The owner of a greenhouse and nursery is considering whether to spend $6,000 to acquire the licensing to grow a new variety of rosebush, which she could then sell for $6 each. Per-unit variable cost would be $3. How many rosebushes would she have to produce and sell in order to break even?
A. 1,600
B. 2,400
C. 2,000
D. 1,000
E. 1,500