Question

A lumber mill is capable of producing 10,000 board feet of lumber per day when run ten hours per day with minimal breaks. Over the past year, forestry legislation has reduced the availability of raw materials, so the mill has produced an average of 4,575 board feet per day. What is the utilization of the plant

Answer 1

Answer:

45.75%

Explanation:

When asking for the utilization of the plant, the question is basically referring to how much of its full potential is the plant currently operating at. Therefore this can be calculated by dividing its current output (4,575) by its maximum output (10,000) like so...

4,575 / 10,000 = 0.4575

Now we multiply that by 100 in order to get the percentage.

0.4575 * 100 = 45.75%

Therefore the current utilization of the plant is 45.75%