Answered

Westonci.ca is the best place to get answers to your questions, provided by a community of experienced and knowledgeable experts. Get immediate and reliable answers to your questions from a community of experienced experts on our platform. Join our platform to connect with experts ready to provide precise answers to your questions in different areas.

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 :

abiolataiwo2015

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%

We hope this information was helpful. Feel free to return anytime for more answers to your questions and concerns. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Westonci.ca is committed to providing accurate answers. Come back soon for more trustworthy information.