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

To decrease plant utilization for Bold by 15%, the Baldwin company needs to determine the current number of units produced and subtract 15% of that number to get the target number of units for next year.

Step-by-step explanation:

Plant utilization refers to the efficient use of manufacturing facilities or industrial plants. It involves maximizing the capacity and output of production processes while minimizing waste and downtime, optimizing overall efficiency. To decrease plant utilization for Bold by 15%, the Baldwin company needs to determine the current number of units produced and then calculate 15% of that number.

The resulting value will be subtracted from the current number of units to get the target number of units for next year.

For example, if the current number of units produced is 100, the decrease of 15% would be 15 units (15% of 100).

So, the target number of units for next year would be 85 units (100 - 15).

Answer 2

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

Step-by-step 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.