#### Mill (grinding) - Wikipedia

Including the capacity utilization rate in this equation gives a much more realistic billable figure: (144,000 / 2,000) / Capacity utilization rate (which was 74% for Leslie's company, or .74) (144,000 / 2,000) / .74 = 72 / .74 = 97.29. Rounded down, the optimal billable rate to realize their 20% profit margin is …