Warehouse for XYZ Company has the physical ability to handle 1,200 units of products CASE STUDY 2 Warehouse for XYZ Company has the physical ability to handle 1,200 units ofproducts. However, Store manager believe that 1,300 units can be handledeffectively. The last event, although forecasted to have 1,000 units, resulted in theaactual record of only 950 units. A product is currently made in a process-focusedshop, where fixed costs are RM9000 per year and variable cost is RM60 per unit.The firm sells the product for RM300 per unit. I’lmi, Production Manager has been timedperforming four work elements, with the results shown in the following table. The allowancesfor tasks such as personal 7%; fatigue 10%; and delay 3%.TaskElementPerformanceRating (%)Observations (minutes)1 2 3 4 51 110 0.5 0.4 0.5 0.4 0.42 95 0.6 0.6 0.9 0.6 0.73 90 0.6 0.5 0.6 0.5 0.54 85 1.5 1.6 1.9 1.6 1.5Table of Work PerformanceRequireda. Calculate the utilization and efficiency(6 marks)b. Calculate the break-even point in unit and Ringgit (6 marks)c. Compute the normal time(8 marks)d. Compute the standard time(5 marks)
