Posted: January 3rd, 2017

A chemical company produces an average of 70 gallons of its cleaning solvent per hour around the clock (24 hours/day).

A chemical company produces an average of 70 gallons of its cleaning solvent per hour around the clock (24 hours/day). A customer wants to sign a contract calling for daily delivery of 1,500 gallons of the solvent. If the chemical company decides to produce for this customer only, what will be its undercapacity scheduling level, expressed as a decimal fraction?

a. 2.14
b. 1.12
c. 0.89
d. 0.75