Capacity Utilization Calculator

Formula

The formula to calculate the Capacity Utilization (CU) is:

\[ CU = \left( \frac{CO}{MO} \right) \times 100 \]

Where:

Capacity Utilization: The ratio of current output to total output possible, expressed as a percentage.

Let's say the current output (CO) is 500 units and the maximum potential output (MO) is 1000 units. Using the formula:

\[ CU = \left( \frac{500}{1000} \right) \times 100 \]

We get:

\[ CU = 50\% \]

So, the capacity utilization is 50%.