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12 August, 20:22

The Baldwin company wants to decrease its plant utilization for Bold by 15%. How many units would need to be produced next year to meet this production goal? Ignore impact of accounts payable on plant utilization.

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  1. 12 August, 20:28
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    1575 units would be needed to be produced next year to meet this production goal.

    Explanation:

    plant utilization after decrease = 105% - 15%

    = 81%

    let the number of units produced be Y

    plant utilization = units produced/plant capacity

    81% = Y/1750 units

    Y = 1575 units

    Therefore, 1575 units would be needed to be produced next year to meet this production goal.
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