Fabricating Solutions in Minnesota manufactures widgets, and the company's effective capacity is 2 units in 5 minutes. The company is usually open 12 hours per day (2 shifts per day and each shift is 6 hours each day) and 20 days for each month. The actual output for February was 4,750 units, and the actual output for March was 5,200 units.
-Find the capacity utilization in February at Fabricating Solutions from the information provided above.
A)82.5%
B)90.3%
C)41.2%
D)45.2%
E)Do not have enough information to compute

Question

Quizplus · Accepted Answer

Capacity utilization = (Actual output / (Effective capacity * Actual operating time)) * 100Actual operating time = (12 hours/day * 20 days/month) * 2 shifts/day = 480 hours/monthCapacity utilization in February = (4,750 units / (2 units/5 minutes * 480 hours/month)) * 100 = 82.5%

Fabricating Solutions in Minnesota Manufactures Widgets, and the Company's Effective