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, which of the following is the capacity cushion? A. 25 percent

B. 100 units per hour

C. 75 percent

D. 125 percent

E. 133 percent

Question

Business

Nadia Dyer

31 August, 16:35

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, which of the following is the capacity cushion? A. 25 percent

B. 100 units per hour

C. 75 percent

D. 125 percent

E. 133 percent

+2

Answers (1)

Know the Answer?

Alessandra Perkins · Answer 1

The correct answer is A.

Explanation:

Giving the following information:

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.

To calculate the capacity cushion, we need to use the following formula:

Capacity cushion = spare capacity / total capacity

Capacity cushion = 100/400 = 0.25=25%

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, which of the following is the capacity cushion? A. 25 percentB. 100 units per hourC. 75 percentD. 125 percentE. 133 percent

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, which of the following is the capacity cushion? A. 25 percent

B. 100 units per hour

C. 75 percent

D. 125 percent

E. 133 percent