Answer:
Terryville plans to produce 47,600 units in March.
Explanation:
First of all, let us lay out the information given clearly:
Projected sales = 48,000 units
Inventory (March 1) = 3,500 units
Inventory (march 31) = 3,100 units.
From the above information, the total units to be produced can be calculated by adding the total projected sales to the ending inventory as follows:
Total projected units to be produced = projected sales + ending inventory
= 48,000 + 3,100 = 51,100 units
However, we are told that the inventory at the beginning of the month of March is 3,500, therefore of the total amounts to be produced, 3,500 units is already available, hence to get the new amount to be produced we will subtract the beginning inventory from the total units planned to be produced.
Total units to be produced = 51,100 - 3,500 = 47,600 units.
