The total units that will be produced by Pasadena Candle Inc. based on the projected sales given will be 49100 units
<h3>How to calculate the units?</h3>
Expected unit to be sold = 58000
Desired ending inventory = 6000
Total units available = 52000
Less: Estimated beginning inventory = 2900
Total units to be produced = 49100
In conclusion, the total units will be 49100.
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Your interest formula is given to you.
<span>Interest in a year = principal (the amount invested) * rate (the interest rate) * period (the time you're measuring) </span>
<span>Interest = 55,000 * 2% * 1 year = 55,000 * 0.02 * 1 = $1,100 </span>
<span>How much would you need to have made for your spending power to keep with inflation? Your interest rate would have needed to match the inflation rate, otherwise, prices are going up faster than you're saving. </span>
<span>Required interest = 55,000 * 3.24% * 1 year = 55,000 * 0.0324 * 1 = $1,782 </span>
<span>How much buying power did you lose? The difference between your required interest and your actual interest. </span>
<span>Buying power lost = 1,782 - 1,100 = $682. You lost this much in buying power. </span>
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