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A company is evaluating their capacity to determine if they can meet a higher level...

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Accounting

A company is evaluating their capacity to determine if they can meet a higher level of production with their existing equipment. What measure of capacity utilization would provide a better signal of the need for an additional machine?

capacity utilization based on theoretical capacity
capacity utilization based on market demand
capacity utilization based on normal capacity
capacity utilization based on budgeted capacity

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