If the actual output of a piece of equipment during an hour is 500 units and its best operating level is at a rate of 400 units per hour, which of the following is the capacity utilization rate?
A) 0.75
B) 1.00
C) 1.25
D) 1.33
E) 100

Question

Quizplus · Accepted Answer

The capacity utilization rate is calculated by dividing the actual output by the best operating level: 500 units / 400 units = 1.25.

If the Actual Output of a Piece of Equipment During