Calculating Capacity Utilisation

[@tutor2u-official]

Find some fantastic Business study resources from the tutor2u website www.tutor2u.net/business/collections

[@kenemitchell9578]

I might be 7 years late, but these videos are really helping me with my exams

[@tutor2u-official]

Good luck with your papers!

[@cranberrybutter5768]

Very well explained, thank you very much

[@tutor2u-official]

Huge thanks - much appreciated!

[@jamieharrison9810]

Another top drawer video from the tutor2u team

[@ceemor3404]

Top dollar video! You never fail to give the best explained and detailed videos regarding business,economics,sociology,etc.

[@kiranamutiarakusakanusa3054]

thanksss

[@nawazjaffarali447]

500000 * 0.95 = 475000, how can it be exceeding the actual capacity if the utilization is less than 100%. Please correct me if I'm wrong!

[@noellavinci8892]

+Nawar jaffar ali Well, it says it has *exceeded* its capacity, which means you have this equation: 500000/x=0.95 Qw know that x has to be *bigger* than 500000, put it in the calculator(or work it out mentally) and then you get 526316. Hope this helped.

[@laurenmarshall8311]

A business can use outsourcing to increase their capacity Utilisation, thus meaning they can have a percentage Utilisation of over 100%. Hope this helps :)

[@mrsloca1412]

Thank you so much

[@tutor2u-official]

You're most welcome

[@patmcglone5367]

Can anyone explain the last section when he comes up with the 526,316 - Not sure how he got to over capacity

[@reecedurns5107]

Pat McGlone because 500,000 is 95% of what the business can make if working at its maximum capacity which he worked out to be 526,000