The Baldwin company wants to decrease its plant utilization for Brat by 15%. How many units...

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.

Select: 1

	1,202
	1,952
	1,683
	1,414

Brat

growth rate 11%%

units sold 1,926

inventory 351

capacity next round 1,794

plant utilization 127%

Expert Solution

Answer:

Decrese in Plant utilization = 127% ( -) 15% = 112%

Plant Utilization   = No. of Units Produced / Next round Capacity
     No. of Units Produced = Plant Utilization x Next round Capacity
                                                    =    112% x 1,794 Units
                                                    =    2,009 Units

It is closest to 1,952 Units
Option (b) is correct - 1,952 Units

ekkarill92 answered 2 years ago

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