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Business_A-level_Edexcel

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  1. 1-marketing-and-people

    1-1-meeting-customer-needs
    3 主题
  2. 1-2-market
    5 主题
  3. 1-3-marketing-mix-and-strategy
    5 主题
  4. 1-4-managing-people
    5 主题
  5. 1-5-entrepreneurs-and-leaders
    6 主题
  6. 2-managing-business-activities
    2-1-raising-finance
    4 主题
  7. 2-2-financial-planning
    4 主题
  8. 2-3-managing-finance
    3 主题
  9. 2-4-resource-management
    4 主题
  10. 2-5-external-influences
    3 主题
  11. 3-business-decisions-and-strategy
    3-1-business-objectives-and-strategy
    4 主题
  12. 3-2-business-growth
    4 主题
  13. 3-3-decision-making-techniques
    4 主题
  14. 3-4-influences-on-business-decisions
    4 主题
  15. 3-5-assessing-competitiveness
    3 主题
  16. 3-6-managing-change
    3 主题
  17. 4-global-business
    4-1-globalisation
    5 主题
  18. 4-2-global-markets-and-business-expansion
    5 主题
  19. 4-3-global-marketing
    3 主题
  20. 4-4-global-industries-and-multinational-corporations
    3 主题
  21. 5-exam-technique
    5-1-the-exam-papers
    4 主题
  22. 5-2-business-studies-skills
    1 主题
  23. 5-3-structuring-your-responses
    5 主题
  24. 6-pre-release-preparation
    2025-pre-release-music-industry
    9 主题
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Calculating capacity utilisation

  • Capacity utilisation is a measure of the level to which a business’s assets are being used to produce output

  • It compares the current output to the maximum possible output a business can produce using all of its assets and is expressed as a percentage

  • Capacity utilisation is calculated using the formula

Capacity space utilisation space equals space fraction numerator space space Current space output over denominator Maximum space possible space output end fraction space cross times space 100

Worked Example

Lola Bakery produces specialist Indian and Bangladeshi breads that are sold to restaurants in the West Midlands. Batch production is used in the factory to manufacture a range of breads, and the factory can produce a maximum of 68,400 units per month. 

In May, factory output was 51,420 units. 

Calculate Lola Bakery’s capacity utilisation in May.

Step 1: Divide the current output by the maximum output

equals space fraction numerator 51 comma 420 space units over denominator 68 comma 400 space units end fraction equals space 0.75

Step 2: Multiply the outcome by 100 to obtain the percentage capacity utilisation

equals space 0.75 space cross times space 100 space space equals space 75 percent sign

Worked Example

Lola Bakery produces specialist Indian and Bangladeshi breads that are sold to restaurants in the West Midlands. Batch production is used in the factory to manufacture a range of breads, and the factory can produce a maximum of 68,400 units per month.

In August, capacity utilisation increased to 92%.

Calculate the number of units produced by Lola Bakery in August.

Step 1: Convert 92% to a decimal

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