Dallas corporation had beginning inventory of 18,700 units and expects sales of 80,000 units during the year. desired ending inventory is 19,500 units. how many units should dallas corporation produce?

First, the amount that is needed in order to complete the 80,000 expected sales given that there is already 18,700 units is calculated by subtraction of 18700 from 80,000.

n = 80,000 - 18,700 = 61,300

If the company wishes to have 19,500 inventory at the end of the year, the total number of units to be produced is,

T = 61,300 + 19,500 = 80,800

Answer: 80,800 units