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28 August, 08:57

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

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  1. 28 August, 09:18
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    Production = 85,000 units

    Explanation:

    Giving the following information:

    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

    To calculate the number of units to be produced, we need to use the following formula:

    Production = sales + desired ending inventory - beginning inventory

    Production = 90,000 + 15,000 - 20,000

    Production = 85,000
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