Question: You are thinking about purchasing a new oven for your bakery that costs $20,000. You charge $20 for each cake, while the actual cost per

You are thinking about purchasing a new oven for your bakery that costs $20,000. You charge $20 for each cake, while the actual cost per cake is $5. If your new oven has design and effective capacities of 5,000 and 4,000 cakes per year, respectively, and you expect to bake 4,500 cakes each year, what will be the utilization of this oven?

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