Under ideal conditions, a picture frame manufacturing facility can produce 480 frames per day. under normal conditions, the company schedules 135 frames per day. current market conditions and production strategy have combined to limit production to 120 frames per day. what is the approximate utilization rate for current capacity?

The answer is: The Capacity Utilization Rate of the company is 25%

Explanation:

To calculate the capacity utilization rate (CU rate) of a company, you must divide the current level of output of the company by the maximum level of output possible, and then multiply by 100 to get a percentage rate.

               CU rate = (current level of output / maximum level of output) x 100

The current level of output is 120 frames per day, so we divide 120 by 480 (which is the maximum level of output possible) and we get 0.25, then we multiply by 100 to get 25%.

               CU rate = (120/480) x 100 = 25%

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empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.