Amy Xia's plant is designed to produce 10 comma 000 10,000 hammers per day but is limited to making 6 comma 000 6,000 hammers per day because of the time needed to change equipment between styles of hammers. The utilization rate for the plant = nothing % (enter your answer as a percentage rounded to two decimal places).

Question

Ace Bernard

Business

7 September, 01:58

Amy Xia's plant is designed to produce 10 comma 000 10,000 hammers per day but is limited to making 6 comma 000 6,000 hammers per day because of the time needed to change equipment between styles of hammers. The utilization rate for the plant = nothing % (enter your answer as a percentage rounded to two decimal places).

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Answers (1)

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Salvador Benitez · Answer 1

60%

Explanation:

The computation of the utilization rate for the plant is shown below:

As we know that

Utilization rate = Actual output : Design capacity

where

Actual output is 6,000 hammers per day

And, the design capacity is 10,000 hammers per day

So by considering the above information, the utilization rate is

= 6,000 hammers per day : 10,000 hammers per day

= 60%

It is always expressed in a percentage form