Question

If, for this machine, design capacity is 50 cords per day, effective capacity is 40 cords per day, and actual output is expected to be 30 cords per day, what would be its utilization?

Answer 1

Answer:

60%

Explanation:

Data provided as per the question is below

Design capacity = 50 cords per day

Effective capacity = 40 cords per day

Actual output = 30 cords per day

The computation of utilization is shown below:-

Utilization = Actual output ÷ Design capacity

= 30 ÷ 50

= 0.6

or 60%

Therefore for computing the utilization we simply divide design capacity by actual output.