Given the following information, what would utilization be?
Effective capacity = 20 units per day
Design capacity = 60 units per day
Actual output = 15 units per day
A)25%
B)33%
C)50%
D)75%
E)none of these

Question

Quizplus · Accepted Answer

Utilization is calculated as the actual output divided by the effective capacity. Therefore, utilization = (15 units per day / 20 units per day) * 100% = 75%. However, the question seems to be asking for efficiency, not utilization. Utilization is actually calculated as actual output divided by design capacity, which would be (15/60)*100 = 25%. The correct answer based on the standard definition of utilization is a mistake in the question's framing.

Given the Following Information, What Would Utilization Be