What would be its utilization

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Reference no: EM133251355

Case: The owner of Firewood To Go is considering buying a hydraulic wood splitter that sells for $5,000 (FC). He figures it will cost an additional $50 per cord to purchase the unsplit wood to split with this machine (v), while he can sell each cord of split wood for $125 (R). If, for this machine, design capacity is 60 cords per day, effective capacity is 40 cords per day, and actual output is anticipated to be 50 cords per day, what would be its utilization?

How do you calculate utilization %?

Reference no: EM133251355

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