Luxury Baking can make 1200 chocolate chip cookies per day u

Luxury Baking can make 1,200 chocolate chip cookies per day under normal conditions and 1,500 with overtime labor. In the month of February, the average production was 1,300 cookies per day. What was Luxury Baking\'s design capacity utilization in February.

Solution

Capacity Utilization Rate = [ (Actual Output)/(Potential Output) ] x 100

= 1300 / 1500 * 100

= 86.67 %

So, Luxury Baking\'s design capacity utilization in February was 86.67%