Bakery Production Analysis
A local bakery owns two large, fully-functional industrial ovens. For the past six months, they have only used one oven, even during their busiest hours. The owner confirms they have enough skilled bakers and a steady supply of ingredients to operate both ovens simultaneously. When asked why they don't increase production, the owner states, 'We just don't have enough customers buying our current volume to justify making more.'
Based on this information, explain why the bakery is operating with low capacity utilization and identify the specific factor limiting its production.
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Bakery Production Analysis