#### How to Calculate Production Capacity | Bizfluent

21.11.2018 · Capacity-utilization rate is a measure of what percentage of capacity a business is currently performing at. The formula for capacity-utilization rate is actual output divided by the potential output. For example, say that a business has the capacity to produce 1,600 widgets a day as in the above example, but is only producing 1,400. The capacity utilization rate is 1,400 over 1,600, or 87.5 ...

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