Not to be a smarta**, but the correct capacity for me has always been to fill it till it comest out of the top oil hole. Since you asked "what is the correct capacity", it makes me wonder if that is how you do it. My dad did it that way, but he also broke most everything he worked on worse, before he fixed it!!!
That is what i have done in past, however this is a different gearcase than was on my old 200. Went to Merc page, only gave values of motors to 200hp??<br />They were listed at 22 oz, I put 20 oz in and was getting fluid out of vent, so AN OUNCE (get it ) of prevention is cheaper than a blown seal...