The owner of Firewood To Go is considering buying a hydraulic wood splitter which sells for $50,000. He figures it will cost an additional $100 per cord to purchase and split wood with this machine, while he can sell each cord of split wood for $125. If, for this machine, design capacity is 50 cords per day, effective capacity is 40 cords per day, and actual output is expected to be 32 cords per day, what would be its efficiency?
A)100 percent
B)80 percent
C)75 percent
D)70 percent
E)0 percent

Question

Quizplus · Accepted Answer

Efficiency is calculated as the ratio of actual output to effective capacity, multiplied by 100 to get a percentage. Here, the actual output is 32 cords per day and the effective capacity is 40 cords per day. Therefore, efficiency = (32 / 40) * 100 = 80 percent.

The Owner of Firewood to Go Is Considering Buying a Hydraulic