What is rochelle company theoretical capacity


Problem: Rochelle Company is an Internet service provider. They own a large number of servers and other equipment, which costs $200,000 per year. Capacity costs estimates are reported on a per service hour basis. Managers estimate that, on average, the cost per hour demanded is $2.50 per hour. This year, managers estimate that the cost per hour demanded is $2.67 per hour. When managers take into account normal server downtime, the cost per hour supplied is $2.22. Ignoring this normal server downtime, the cost per hour supplied is $2.00. Based on this information, what is Rochelle Company's theoretical capacity? 90,000 hours 80,000 hours 100,000 hours 75,000 hours

 

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: What is rochelle company theoretical capacity
Reference No:- TGS03417738

Expected delivery within 24 Hours