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# The problems at NTM began several years ago when the previous chief executive took the decision to double production capacity. He could not have foreseen the worldwide recession and how this would reduce the demand for the textiles made in the factory. The following figures tell their own story and the cost impact on the business is now serious:$\begin{array}{|l|c|c|c|} \hline & \textbf{ 2012 } & \textbf{ 2013 } & \textbf{ 2014 } \\ \hline \text { Maximum capacity (million metres) } & 5 & 5 & 5 \\ \hline \text { Actual annual output (million metres) } & 4.0 & 3.7 & 3.0 \\ \hline \text { Selling price per metre } & \ 3 & \ 3 & \ 2.7 \\ \hline \text { Annual fixed costs } & \text{ \3m } & \text{ \3m } & \text{ \3m } \\ \hline \text { Variable costs per metre } & \ 2 & \ 2 & \ 2.2 \\ \hline \end{array}$Calculate the capacity utilisation rates for Nassau in each of the three years.

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In this exercise, we are to determine the capacity utilisation rates for three years of Nassau company.

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