Question

If the best operating level of a process X is 1026 bottles per day and the actual output during a day is 786 bottles, then what is the capacity utilization rate for process X

Answer 1

greater than 70% but less than or equal to 90%

Step-by-step explanation:

The computation of the capacity utilization rate for process X is shown below:

As we know that

Capacity Utilization = (Actual Output ÷ Design Capacity) × 100

= (786 ÷ 1026) × 100

= 76.61%

So, it is greater than 70% but less than or equal to 90%