1. (TCO 8) The Clothes Factory wants to increase capacity by adding a new sewing machine. The fixed costs for machine A are $9,000, and its variable cost is $4 per unit. The revenue is $7 per unit. The break-even point for the sewing machine is
2. (TCO 9) A full-service restaurant is considering opening a new facility in a specific city. The table below shows its ratings of four factors at each of two potential sites.
Factor Weight Wind City State Line
Affluence of local population .40 25 25
Traffic flow .20 50 20
Parking availability .10 30 40
Growth potential .30 10 30
The score for Wind City is _____ and the score for State Line is _____.
3. (TCO 8) ABC Cleaners' washing machines have a design capacity of 2,900 pounds a day. Because of scheduled maintenance of their equipment, management feels that only 2,500 pounds of clothes can be washed in a day. Yesterday, three employees were sick and only 2,100 pounds of clothes were washed. What was the utilization of the washing machine yesterday?
4. (TCO 8) A fleet repair facility has the capacity to repair 800 trucks per month. However, because of scheduled maintenance of their equipment, management feels that they can repair no more than 600 trucks per month. Last month, two of the employees were absent several days each, and only 300 trucks were repaired. What was the efficiency of the repair shop last month?
5. (TCO 8) Design capacity is the
6. (TCO 8) Actual output as a percent of design capacity is
7. (TCO 9) A location decision for an appliance manufacturer would tend to have a(n)
8. (TCO 9) The focus in service location strategy is on
9. (TCO 9) Intangible costs include which of the following?
10. (TCO 8) What is the TOC concept that is used by OMs to manage bottlenecks in an operation?