Question

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.

Answer 1

Answer:

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.