I can't figure out capacity utilisation Watch

Nandina
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Report Thread starter 2 years ago
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A firm’s capacity utilisation is 60%. Its capacity then increases by 20%. Its new capacity utilisation is:

A 40%.
B 50%.
C 75%.
D 80%.

The mark scheme says the answer is B. 50% and find figure out why.
To get 50% the only way possible I've tried is by doing this: 0.50x20% = 10 then 60% - 10 = 50%.
Is this right?
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DanTheBoy
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What I did is that you know capacity utilisation is 60% to work out the capacity I added 20% onto 100 and then used the formula to get 60/120*100 and it gets you 50%
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