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27 August, 04:33

If the company budgets to need 4000 units to sell for a month, has a beginning inventory of 1000 units and a desired ending inventory of 2500 units, how many units do they need to produce?

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  1. 27 August, 04:51
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    5,500 units

    Explanation:

    The computation is shown below:

    Given that

    Need to sell the units in a month = 4,000 units

    Beginning inventory = 1,000 units

    Desired ending inventory = 2,500 units

    So, by considering the above information, the units to be produced is

    = Desired ending inventory + need to sell the units in a month - beginning inventory

    = 2,500 units + 4,000 units - 1,000 units

    = 5,500 units
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