If the best operating level of a piece of equipment is at a rate of 400 units per hour and the actual output during an hour is 300 units, which of the following is the capacity utilization rate?
A) 0.75
B) 1.00
C) 1.33
D) 2.33
E) 300

Question

Quizplus · Accepted Answer

Capacity Utilization Rate = Actual Output / Best Operating Level
= 300 / 400
= 0.75
Therefore, the capacity utilization rate is 0.75 or 75%. Option A is the correct answer.

If the Best Operating Level of a Piece of Equipment