Question

Production and sales estimates for March for Robin Co. are as follows: Estimated inventory (units), March 1 18,400 Desired inventory (units), March 31 19,400 Expected sales volume (units): Territory M 6,400 Territory L 9,400 Territory L 7,100 Unit sales price $12 The number of units expected to be manufactured in March is:

Answer 1

Answer:

23,900 units

Explanation:

The number of units expected to be manufactured in March must equal the total number of units sold in all territories (6,400 + 9,400 + 7,100), added to the difference between the desired inventory at the end of the month (19,400 units) and the estimated inventory at the beginning of the month (18,400 units).

The expected number (n) is:

$n = 6,400+9,400+7,100+(19,400-18,400)\\n=23,900\ units$

The number of units expected to be manufactured in March is 23,900.