What are the capacity requirements for the next four years? (Assume that there is no learning.) Note: Enter the demand values in thousands. Round your answers to 2 decimal places.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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LO
5
AlwaysRain Irrigation, Incorporated would like to determine capacity requirements for the next four years. Currently, two
production lines are in place for making bronze and plastic sprinklers. Three types of sprinklers are available in both bronze
and plastic: 90-degree nozzle sprinklers, 180-degree nozzle sprinklers, and 360-degree nozzle sprinklers. Management has
forecast demand for the next four years as follows:
Plastic 90
Plastic 180
Plastic 360
Bronze 90
Bronze 180
Bronze 360
1 (IN 0005) 2 (IN 0005)
35
43
13
17
50
56
7
8
6
YEARLY DEMAND
Plastic
Demand for plastic sprinklers
Percentage of capacity used
Machine requirements
Labor requirements
3 (IN 000s)
Year 1
055568u
15
10
Both production lines can produce all the different types of nozzles. The bronze machines needed for the bronze sprinklers
require two operators and can produce up to 15,000 sprinklers. The plastic injection molding machine needed for the
plastic sprinklers requires four operators and can produce up to 200,500 sprinklers. Three bronze machines and only one
injection molding machine are available.
14
Year 2
4 (IN 0005)
55
15
What are the capacity requirements for the next four years? (Assume that there is no learning.)
Note: Enter the demand values in thousands. Round your answers to 2 decimal places.
65
15
9
19
Year 3
%
Year 4
Transcribed Image Text:LO 5 AlwaysRain Irrigation, Incorporated would like to determine capacity requirements for the next four years. Currently, two production lines are in place for making bronze and plastic sprinklers. Three types of sprinklers are available in both bronze and plastic: 90-degree nozzle sprinklers, 180-degree nozzle sprinklers, and 360-degree nozzle sprinklers. Management has forecast demand for the next four years as follows: Plastic 90 Plastic 180 Plastic 360 Bronze 90 Bronze 180 Bronze 360 1 (IN 0005) 2 (IN 0005) 35 43 13 17 50 56 7 8 6 YEARLY DEMAND Plastic Demand for plastic sprinklers Percentage of capacity used Machine requirements Labor requirements 3 (IN 000s) Year 1 055568u 15 10 Both production lines can produce all the different types of nozzles. The bronze machines needed for the bronze sprinklers require two operators and can produce up to 15,000 sprinklers. The plastic injection molding machine needed for the plastic sprinklers requires four operators and can produce up to 200,500 sprinklers. Three bronze machines and only one injection molding machine are available. 14 Year 2 4 (IN 0005) 55 15 What are the capacity requirements for the next four years? (Assume that there is no learning.) Note: Enter the demand values in thousands. Round your answers to 2 decimal places. 65 15 9 19 Year 3 % Year 4
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