Question

A company has a factory that is designed so that it is most efficient (average unit cost is minimized) when producing 18,300 units of output each month. However, it has an absolute maximum output capability of 22,000 units per month, and can produce as little as 7,000 units per month without corporate headquarters shifting production to another plant. If the factory produces 12,770 units in October, what is the capacity utilization rate in October for this factory

Answer 1

Answer: 14.9%

Explanation:

18300/12770x100%