Question: A process is designed to produce 2,000 units per hour. The process has a scrap rate of 2 percent and an 8 percent inherent inefficiency

"A process is designed to produce 2,000 units per hour. The process has a scrap rate of 2 percent and an 8 percent inherent inefficiency Assuming that the actual output of the process is 1,750 units per hour, what are the process design capacity, available capacity, actual capacity, capacity utilization, efficiency, and output gap for this process?" O "Process design capacity= 4,000 units, available capacity=5,960 units, actual capacity=5,803.2 units, capacity utilization= 80 5% efficiency=90.05%, and output gap= 21.5%" O "Process design capacity= 1,500 units, available capacity= 2,960 units, actual capacity=2,103.2 units, capacity utilization=97 5% efficiency=87.05%, and output gap=2.5%" O "Process design capacity= 3,000 units, available capacity=960 units, actual capacity=803. 2 units, capacity utilization=77.5% efficiency=87.05%, and output gap= 22.5%" O "Process design capacity= 2,000 units, available capacity= 1,960 units, actual capacity=1,803.2 units; capacity utilization= 87.5%, efficiency=97 05% and output gap= 12.5%
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