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Ghella
16 days ago
9

If the best operating level of a piece of equipment is at a rate of 400 units per hour and the actual output during an hour is 3

00 units, which of the following is the capacity utilization rate?
A. 0.75
B. 1.00
C. 1.33
D. 2.33
E. 300
Business
1 answer:
Mariulka [3.1K]16 days ago
3 0

Response:

A. 0.75

Clarification:

The calculation for the capacity utilization rate is illustrated as follows:

= Actual output ÷  optimal operating level output

= 300 units ÷ 400 units

= 0.75

This value represents the proportion of actual output to the optimal operating level output that reveals the correct rate.

Additionally, it establishes a connection between the actual output and the optimal operating level output

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I hope this information is beneficial, and now you understand how to approach it. Wishing you a fantastic and joyful day! Also, enjoy the remainder of Black History Month!:-)

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