Based on the following production and sales estimates for May, determine the number of units expected to be manufactured in May: Estimated inventory (units), May 1 20,000 Desired inventory (units), May 31 15,000 Expected sales volume (units): South region 30,000 West region 40,000 North region 20,000 Unit sales price $10
1 answer
Question:
Based on the following production and sales estimates for May, determine the number of units expected to be manufactured in May:
Estimated inventory (units), May 1 20,000
Desired inventory (units), May 31 15,000
Expected sales volume (units):
South region 30,000
West region 40,000
North region 20,000
Unit sales price $10
Estimated inventory (units), May 1 20,000
Desired inventory (units), May 31 15,000
Expected sales volume (units):
South region 30,000
West region 40,000
North region 20,000
Unit sales price $10
Answers
Answer:Production= 85,000 unitsExplanation:Giving the following information:Estimated inventory (units), May 1= 20,000Desired inventory (units), May 31= 15,000Expected sales volume (units):South region 30,000West region 40,000North region 20,000To calculate the number of units to be produced, we need to use the following formula:Production= sales + desired ending inventory - beginning inventoryProduction= 90,000 + 15,000 - 20,000Production= 85,000
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