Question

In: Finance

Toys Sky Manufacturing study suggests that 1 million new baby dolls can be sold per year.

Toys Sky Manufacturing study suggests that 1 million new baby dolls can be sold per year. If an assembly line at maximum capacity can produce 25,000 dolls a month per shift, can the company meet its sales goal for the year if it plans to run in two shifts? What would be the maximum production capacity if an additional shift could be added? Show your calculations. (2 points)

Solutions

Expert Solution

Target Sales    1,000,000.00
Production per month per shift          25,000.00
Number of Shifts                     2.00
Months in a Year                  12.00
So, Total Production in a year        600,000.00
No, The company can't meet its sales goal when there are 2 shifts a day.

When an extra shift is added then:-

Target Sales    1,000,000.00
Production per month per shift          25,000.00
Number of Shifts                     3.00
Months in a Year                  12.00
So, Total Production in a year        900,000.00
No, The company stll can't meet its sales goal when there is an additional shift.

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