Question

If the company budgets to need 4000 units to sell for a month, has a beginning inventory of 1000 units and a desired ending inventory of 2500 units, how many units do they need to produce?

Answer 1

Answer:

5,500 units

Explanation:

The computation is shown below:

Given that

Need to sell the units in a month = 4,000 units

Beginning inventory = 1,000 units

Desired ending inventory = 2,500 units

So, by considering the above information, the units to be produced is

= Desired ending inventory + need to sell the units in a month - beginning inventory

= 2,500 units + 4,000 units - 1,000 units

= 5,500 units