A firm produces 12 different services and has capacity to service 360,000 customers per year.A total of 24 service workers are employed.If 270,000 customers receive service during a particular year,what is the capacity cushion during that year?
A)25%
B)50%
C)75%
D)There is not enough information to determine the answer

Question

Quizplus · Accepted Answer

The capacity cushion is calculated as the difference between capacity and actual output, divided by capacity. Here, the capacity is 360,000 customers, and the actual output is 270,000 customers. The capacity cushion is (360,000 - 270,000) / 360,000 = 25%.

A Firm Produces 12 Different Services and Has Capacity to Service