2. A company has a factory that is designed so that it is most effi cient (average unit costis minim

2. A company has a factory that is designed so that it is most effi cient (average unit costis minimized) when producing 15,000 units of output each month. However, it has anabsolute maximum output capability of 17,250 units per month, and can produce as littleas 7,000 units per month without corporate headquarters shifting production to anotherplant. If the factory produces 10,925 units in October, what is the capacity utilization ratein October for this factory?

 

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