Answer:
The correct answer is A.
Explanation:
Giving the following information:
The best operating level of a piece of equipment is at a rate of 400 units per hour and the actual output during an hour is 300 units.
To calculate the capacity cushion, we need to use the following formula:
Capacity cushion= spare capacity/ total capacity
Capacity cushion= 100/400= 0.25=25%