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15 February, 05:24

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?

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  1. 15 February, 05:54
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    2,015 computers

    Explanation:

    The computation of the produce units is shown below:

    = Sale units + ending inventory units - beginning inventory units

    where,

    Sale units is 2,000 computers

    Ending inventory units = 2,000 computers * 15% = 300 computers

    Beginning inventory units = 1,900 computers * 15% = 285 computers

    Now put these units into the formula above

    So, the units would equal to

    = 2,000 computers + 300 computers - 285 computers

    = 2,015 computers
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