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2 December, 07:40

The baldwin company wants to decrease its plant utilization for brat 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. 2 December, 07:48
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    The number of units need to be produced next year is 1215 units.

    Explanation:

    Decrease in the plant utilization for a buddy by 15%

    The utilization of plant by buddy is 96%

    Decrease in plant utilization = 96%-15%

    = 81%

    Let the no. of produced unit be x

    The number of unit produced is calculated as

    Plant Utilization = Units Produced / Plant Capacity

    81% = X/1500units

    X = 1500*0.81

    =1215 units

    The number of unit produced is 1215 units.
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