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27 May, 03:14

Production and sales estimates for April are as follows:

Estimated inventory (units), April 19,000

Desired inventory (units), April 30 18,000

Expected sales volume (units):

Area A 3,500 Area B 4,750 Area C 4,250

Unit sales price $20

The number of units expected to be manufactured in April is:

Choose the correct answer:

a. 11,500

b. 10,000

c. 12,500

d. 13,500

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Answers (1)
  1. 27 May, 03:21
    0
    Production = 11,500 units

    Explanation:

    Giving the following information:

    Estimated inventory (units), April 19,000

    Desired inventory (units), April 30 18,000

    Expected sales volume (units):

    Area A 3,500

    Area B 4,750

    Area C 4,250

    Total sales = 12,500

    To calculate the production for April, we need to use the following formula:

    Production = sales + desired ending inventory - beginning inventory

    Production = 12,500 + 18,000 - 19,000

    Production = 11,500 units
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