Our capacity utilization rate is usually between \- (LO6) (1) c) 50 and 70 b) 30 and 50 d) 70 and 90

Short Answer

Expert verified
The capacity utilization rate is usually between \(70\%\) and \(90\%\), which indicates a high level of efficiency in using available resources or production capacity. So, the correct answer is option d) 70 and 90.

Step by step solution

01

Understand Capacity Utilization Rate

The capacity utilization rate is a measure of how effectively an organization or industry is using its available resources or production capacity. It is calculated as the percentage of the actual level of output produced, compared to the maximum possible output or capacity. A high rate indicates that the organization is using its resources efficiently, while a low rate implies that there is room for improvement in the production process.
02

Analyze the given ranges

We have three ranges: 50-70%, 30-50%, and 70-90%. By understanding the implications of each range, we can determine which range is usually used. 1. 50-70%: This range implies that an organization is using half to just over half of its available resources or production capacity. It suggests moderate efficiency, but there may still be room for improvement. 2. 30-50%: This range indicates that the organization is using less than half of its available resources or production capacity, meaning that there is significant room for improvement in efficiency. 3. 70-90%: This range suggests that the organization is using a substantial portion of its resources or production capacity and is typically considered as the most efficient utilization rate.
03

Choose the correct option

Based on our analysis, the option with the capacity utilization rate usually falling between 70 and 90% (Option d) is the most appropriate range, as it indicates a high level of efficiency in using the available resources or production capacity. So, the correct answer is option d) 70 and 90.

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