Assume Baldwin is producing 2,498 units of Bill next year. What would Bill's plant utilization be?

a. 135.00%

b. 128.45%

c. 137.70%

d. 132.30%

Answer: Option A

Explanation:

The production utilization is the use of the productive capacity of the firm. It shows the extent to which the production capacity of the firm can be used to produce the goods in the firm.

It shows the relationship between the output that has been produced with the equipment that has been installed in the enterprise. If the capacity of the firm is totally utilised, it is very efficient and can be used to produce the maximum amount of goods of that enterprise.