Westonci.ca makes finding answers easy, with a community of experts ready to provide you with the information you seek. Connect with a community of experts ready to help you find solutions to your questions quickly and accurately. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.

A company has a factory that is designed so that it is most efficient (average unit cost is minimized) when producing 15,800 units of output each month. However, it has an absolute maximum output capability of 19,000 units per month, and can produce as little as 7,000 units per month without corporate headquarters shifting production to another plant. If the factory produces 11,360 units in October, what is the capacity utilization rate in October for this factory?

Sagot :

Answer:

71.9%

Explanation:

Calculation for the capacity utilization rate in October for this factory

October capacity utilization rate =11,360/15,800

October capacity utilization rate=0.719*100

October capacity utilization rate=71.9%

Therefore the capacity utilization rate in October for this factory will be 71.9%