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Sladkaya [172]
3 years ago
14

Dug is a product of the Digby company. Digby's sales forecast for Dug is 2069 units. Digby wants to have an extra 10% of units o

n hand above and beyond their forecast in case sales are better than expected. (They would risk the possibility of excess inventory carrying charges rather than risk lost profits on a stock out.) Taking current inventory into account, what will Dug's Production After Adjustment have to be in order to have a 10% reserve of units available for sale
Business
1 answer:
kotegsom [21]3 years ago
4 0

Answer:

The correct answer is 2,276 units.

Explanation:

According to the scenario, computation of the given data are as follows:

Sales = 2,069 units

Reserve percentage = 10%

So, we can calculate the units of production by using following formula:

Units of production = Sales × ( 1 + Reserve %)

By putting the value, we get

Units of production = 2,069 × ( 1 + 10%)

= 2,069 × 1.10

= 2,275.9 or 2,276 units

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