# business studies - capacity utilisation help!

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#1
A firm’s capacity utilisation is 60%. Its capacity then increases by 20%. Its new capacity utilisation is:

according to the mark scheme the answer is 50% but i can't figure out how they got 50%
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3 years ago
#2
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3 years ago
#3
so if it's 60% capacity utilisation, then the overall capacity increased by 20%. so the capacity before was 100% add 20% is 120% and if the amount of capacity utilised doesn't change, it comes 50% because 60% is half of 120%. does this make any sense? I'm bad at explaining
0
3 years ago
#4
(Original post by s.mo)
A firm’s capacity utilisation is 60%. Its capacity then increases by 20%. Its new capacity utilisation is:

according to the mark scheme the answer is 50% but i can't figure out how they got 50%
Okay so capacity utilisation is actual used/ capacity x100

You have to put some numbers into this to get 60 percent

So 60/100 x100= 60 percent
If capicity is increasing by 20 percent then 100 will go to 120 so now 60/120 x100= 50 percent
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