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Elodia [21]
3 years ago
7

Vitale Hair Spray had sales of 27,000 units in March. A 60 percent increase is expected in April. The company will maintain 20 p

ercent of expected unit sales for April in ending inventory. Beginning inventory for April was 1,350 units. How many units should the company produce in April?
Business
1 answer:
romanna [79]3 years ago
5 0

Answer:

50,490 units

Explanation:

The computation of the number of units the company should produced is shown below:

= Expected sales units + ending inventory units - opening inventory units

where,

Opening inventory units is 1,350 units

Expected sales units is

= $27,000 + $27,000 × 60%

= $27,000 + $16,200

= 43,200 units

The ending inventory units is

= $43,200 × 20%

= 8,640 units

So, the units to be produced is

= 43,200 units + 8,640 units - 1,350 units

= 50,490 units

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