If the Best Operating Level of a Piece of Equipment

question 13

Short Answer

If the best operating level of a piece of equipment is at a rate of 400 units per hour and the actual output during an hour is 300 units, what is the capacity utilization rate? ____________________

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Definitions:

Interest Rate

The percentage of principal charged by the lender for the use of its money or the rate earned on investments.

Loan

A sum of money that is borrowed, often from a financial institution, which is expected to be paid back with interest.

Annual Interest Rate

The percentage increase in money that borrowers pay lenders over a year, typically applied to loans and savings.

Interest

The charge for borrowing money or the return for lending money, expressed as a percentage of the loan amount.