Answer:
Effective output = 224
Capacity Utilization = 80%
Step-by-step explanation:
Given the maximum output = 280
The actual output = 195
The efficiency = 80%
Below is the formula to calculate the efficiency.
Efficiency in percentage = (Effective output / Maximum output) x 100
Insert the given values in the formula.
80 =( Effective output / 280 ) x 100
Effective output = 280 x 0.8
Effective output = 224
Now the Capacity utilization ( %) = Actual output / Maximum output x 100
Capacity utilization in percentage = 224 / 280 x 100
Capacity Utilization = 80%
