A firm produces 12 different services and has capacity to service 360,000 customers per year. A total of 24 service workers are employed. If 270,000 customers receive service during a particular year, what is the capacity cushion during that year?

Capacity cushion is the excess of the of the available capacity over and above the utilized capacity .This then can be expressed as a percentage by multiplying by 100.

Available capacity = 360,000 customers per year

Utilized capacity = 270,000 customers per year

Spare capacity = (available - utilized)/available × 100

= (360,000 - 270,000)/360,000 × 100

= 25%

jepessoa jepessoa · Answer 2 · 2020-04-08T09:52:58+02:00

Answer:

25%

Explanation:

The capacity cushion is basically the spare operating capacity that a company has, and it includes all the different services that the company might offer, e.g. spare capacity of a factory, spare capacity of hotel rooms, spare capacity of web hosting, etc.

The capacity cushion is generally measured as a percentage of total operating capacity = [total operating capacity - total amount of services provided) / total operating capacity] x 100 = [(360,000 - 270,000) / 360,000] x 100 = (90,000 / 360,000) x 100 = 25%