Problem 4-1

A manufacturing shop is designed to operate most efficiently at an output of 1,110 units per day. In the past month the plant averaged 900 units per day.

What was their capacity utilization rate last month? (Round your answer to 1 decimal place.)

Capacity utilization rate _________%

Problem 4-2

A company has a factory that is designed so that it is most efficient (average unit cost is minimized) when producing 15,800 units of output each month. However, it has an absolute maximum output capability of 19,000 units per month, and can produce as little as 7,000 units per month without corporate headquarters shifting production to another plant. If the factory produces 11,360 units in October, what is the capacity utilization rate in October for this factory? (Round your answer to 1 decimal place.)

Capacity utilization rate ___________%