Given the following information, what would efficiency be? Effective capacity = 80 units per day
Design capacity = 100 units per day
Utilization = 48%

Question

Quizplus · Accepted Answer

Efficiency can be calculated by dividing the actual output by the standard output. Effective capacity is the actual output (80 units per day) and design capacity is the standard output (100 units per day). Utilization is the ratio of actual output to the standard output. Therefore, utilization = (80/100) x 100 = 80%. Efficiency can be calculated by multiplying utilization by the efficiency factor. Efficiency factor = 100% / design capacity = 100% / 100 units per day = 1. Therefore, efficiency = utilization x efficiency factor = 80% x 1 = 80%. Therefore, the correct answer is D.

Given the Following Information, What Would Efficiency Be? Effective Capacity