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(Solved): A law firm specializes in the issuance of insurance policies covering large commercial real estate p ...



A law firm specializes in the issuance of insurance policies covering large commercial real estate projects. The projects fall into two categories: shopping centers, and medical complexes. The typical work involved in each transaction is quite predictable and repetitive. The time requirements (unit loads) for preparing a standard contract of each type are given in the table below. The product mix is 30% for shopping and 70% for medical. Also listed are the numbers of professionals of each type and they number of available hours per professionalper day (the rest of time is takenby otheroffice activities):

Shopping

Unit Load

(hours/contract)

Medical

Unit Load

(hours/contract)

Number of

Professionals

Scheduled Availability

Hours/day

Shopping

Effective

Capacity

(contracts/day)

Medical

Effective

Capacity

(contracts/day)

Paralegal464664
Tax Lawyer1338248
Senior Partner112488
Product Mix30%70%

PLEASE SHOW ALL CALCULATIONS:

  1. What is the unit load for Tax Lawyer when considering product mix?
  2. What is the effective capacity of the process in day when considering the product mix?


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Expert Answer



1.

To calculate the unit load for the Tax Lawyer when considering the product mix, we need to take into account the proportion of shopping center projects and medical complex projects.

The unit load for the Tax Lawyer for shopping centers is 1 hour/contract, and the unit load for medical complexes is 3 hours/contract. The product mix is 30% for shopping centers and 70% for medical complexes.

To calculate the unit load for the Tax Lawyer when considering the product mix, we multiply the unit load for each category by its respective proportion and sum them up:
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