Capacity Utilization Calculator
Capacity Utilization Calculator
| Component | Description |
|---|---|
| Actual Output | The actual amount of goods produced by a company. |
| Maximum Possible Output | The maximum amount of goods that could be produced by a company if it operated at full capacity. |
| Capacity Utilization | The percentage of a company’s total possible output that is actually being achieved. |
| Formula | Capacity Utilization = (Actual Output / Maximum Possible Output) × 100 |
| Purpose | Used to measure the efficiency and productivity of a company’s production process. |