Question

26. Variable labor budget: efficiency. If the assumed efficiency of the providers changed to 8570 (SEe A to 92% (see Exhibit I.5c.), what would be the productive capacity for January?

second pic is the exhibit 1.5c
provide formulas used

Answer 1

Soln.As Total capacity formula given is T+ Y that is (P*R*S + U*W*X)

Which can be written further as in which R is (Q/365)=C*D*F*G

And G is none other than assumed efficiency. Similarly is W=V/365= K*L*M*N in which N us efficiency that means capacity is directly proportional to efficiency

Let's assume capacity is at intial capacity of c for 87% so for 92%. c_{​​​​​​new=}c*.92/.87= 1.06c