what is the capacity utilization rate in October for this factory? Note: Round your answer to 1 decimal place.
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A company has a factory that is designed so that it is most efficient (average unit cost is minimized) when producing 19,200 units output each month. However, it has an absolute maximum output capability of 23,000 units per month, and can produce as little 7,000 units per month without corporate headquarters shifting production to another plant. If the factory produces 13,280 units ir
October, what is the capacity utilization rate in October for this factory?
Note: Round your answer to 1 decimal place.
The percentage about an organization's potential production that is actually being realized is measured by capacity utilization rate. A company's or a country's economy's capacity utilization rate may be measured to get a sense of how well it is performing up to its potential. The rate is calculated by dividing the actual output by the projected output at minimum cost, then multiplying the result by 100. If the percentage is less than 100%, the organization is not operating at its maximum capacity. A company's level of production potential is determined by the capacity utilization rate, which may be calculated.
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