A firm produces 12 different services and has capacity to service 360,000 customers per year.A total of 24 service workers are employed.If 270,000 customers receive service during a particular year,what is the capacity cushion during that year?
A) 25%.
B) 50%.
C) 75%.
D) There is not enough information to determine the answer.

Question

Quizplus · Accepted Answer

The capacity cushion is the percentage of capacity that is not being used. It can be calculated as (Capacity - Actual Usage) / Capacity * 100%. In this case, it is (360,000 - 270,000) / 360,000 * 100% = 25%.

A Firm Produces 12 Different Services and Has Capacity to Service