classroom has a design capacity of 70 seats and an effective capacity of 63 43.

Question

classroom has a design capacity of 70 seats and an effective capacity of 63 43. If 50 students attend a class held at that location, calculate the efficiency o of that classroom during that class. a) 71% b) 93% c) 77% d) 108% 44. A particular parking garage is designed with 1600 spaces in which to park 1600 individual cars. Assume, however, that every Mercedes car will always need two such spaces. What then is the design capacity of the parking garage if it were dedicated to storing only Mercedes cars? a) 800 b) 1600 c) 900 d) 3200 45. Costs that continue even when production is shut down and no units are produced at facility are called... a) fixed costs b) variable costs c) breakeven costs d) marginal costs

Explanation / Answer

43. Efficiency is actual output against the effective capacity

= 50/65 = 77%

44. Design capacity is maximum possible capacity defined. Thus for this case, it is 1600 cars.

45. Fixed costs

These are costs incurred by a firm or organization irrespective of the production. Variable costs as the name says are related to production like # of units produced, method of production etc.

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