Ask Question
5 August, 16:01

A company has a factory that is designed so that it is most efficient (average unit cost is minimized) when producing 28,500 units of output each month. however, it has an absolute maximum output capability of 35,000 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 18,170 units in october, what is the capacity utilization rate in october for this factory? (round your answer to 1 decimal place.)

+2
Answers (1)
  1. 5 August, 19:32
    0
    The capacity utilization does not require efficiency to be taken into account. To calculate the capacity utilization, you divide the actual production by the maximum production, which would be 18,170 / 35,000, which is equal to 51.9% utilization.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “A company has a factory that is designed so that it is most efficient (average unit cost is minimized) when producing 28,500 units of ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers