A principal works 20 hours per week, with 60% of time spent on marketing. After increasing utilization by 8 hours, what is the new utilization rate?

• A. 60%
• B. 70%
• C. 80%
• D. 90%

Answer: (C)

Utilization is the portion of total hours worked that goes toward billable, productive work. Here, the principal works 20 hours per week and 60% of that time is spent on marketing (non-billable), so current billable hours are 20 × (1 − 0.60) = 8 hours. Increasing utilization by 8 hours means billable time rises to 8 + 8 = 16 hours, with total hours remaining 20 (non-billable time drops accordingly to 4 hours). The new utilization rate is 16/20 = 0.80, or 80%.