Question

A manufacturing shop is designed to operate most efficiently at an output of 550 units per day. In the past month, the plant averaged 490 units per day. What was its capacity utiliza- tion rate last month?

Answer 1

Answer:

utilization rate last month = 89.09 percent

Explanation:

given data

output per day = 550 units

plant produced at rate = 490 /day

solution

As here output per day is 550 units

so output in one month will be  = 550 × 30

output in one month = 16500 units

and

but the plant produced at a rate of 490 / day

so that net consumption will be

net consumption = 490 × 30

net consumption = 14700 units

so here utilization rate last month will be

utilization rate last month = $\frac{14700}{16500}$ × 100

utilization rate last month = 89.09 percent