Answer:
96.57%
Explanation:
The most efficient capacity utilization rate is 100 units per hour.
The firm used 175 hours and produced 16,900 units in total.
If it had used the hours in the most efficient way, it would have produced a total of:
175 hours x 100 units per hour = 17,500 units
The 16,900 units that it actually produced, as a percentage of the 17,500 units that the firm could have produced is equal to:
16,900 x 100% / 17,500 = 96.57%.
Thus, the capacity utilization rate is 96.57%.
