Microtech plans to sell 2,000 computers in April; 1,900 in May; and 2,000 in June. The company keeps 15% of the next month's sales as ending inventory. How many units should Microtech produce in May? 1,885. 1,915. Amount cannot be determined due to insufficient information. 2,200.

Question

Arthur Payne

Business

29 November, 14:34

Microtech plans to sell 2,000 computers in April; 1,900 in May; and 2,000 in June. The company keeps 15% of the next month's sales as ending inventory. How many units should Microtech produce in May? 1,885. 1,915. Amount cannot be determined due to insufficient information. 2,200.

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Answers (1)

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Belinda Mccullough · Answer 1

1915 units

Explanation:

Data provided:

Number of computer to sell in April = 2,000

Number of computer to sell in May = 1,900

Number of computer to sell in June = 2,000

Ending inventory = 15% of the next month's sale

Number of units to be produced in may = Number of sales units in may + The ending inventory - The ending inventory of the April

Therefore,

Number of units to be produced in may

= 1,900 + (15% of sales units of June) - 15% of sales unit of May

or

= 1,900 + (0.15 * 2,000) - (0.15 * 1,900)

or

= 1915 units