Question

Odell's Furniture has a manufacturing facility in Rigby, Idaho that has an effective capacity of 106 furniture pieces per day and produces 88 furniture pieces per day.What is the facility's efficiency rate?a. Write your answer as a percentage.b. Display your answer to two decimal placesWhat is the facility's utilization rate? a. Write your answer as a percentage.b. Display your answer to two decimal places

Answer 1

a. 83.02%

b. 76.52%

Step-by-step explanation:

The computations are shown below:

a. Facility's efficiency rate = Actual output × 100 ÷ Effective capacity

= 88 × 100 ÷ 106

= 83.02%

b. Facility's utilization rate = Actual output × 100 ÷ Design capacity

= 88 × 100 ÷ 115

= 76.52%