Question

Amy Xia's plant was designed to produce 7,000 hammers per day but is limited to making 6,000 hammers per day because of the time needed to change equipment between styles of hammers. What is the utilization?

Answer 1

Answer:

85.71%

Explanation:

The computation of the utilization rate is shown below:

Utilization rate = (Actual output ÷ Desired output) × 100

where,

Actual output = 6,000 hammers

Desired output = 7,000 hammers

So, the utilization rate is  

= (6,000 hammers ÷ 7,000 hammers) × 100

= 85.71%

By dividing the actual output by the desired output we can get the utilization rate