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Production and Sales Estimates for June are as Follows

Quizzma Team

Production and sales estimates for June are as follows




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    1. Quizzma Team

      Units to be Manufactured=Expected Sales Volume+Desired Ending Inventory−Beginning Inventory

      First, we sum up the expected sales volume for the three territories:

      4,000(Territory X)+6,000(Territory Y)+5,500(Territory Z)=15,500

      Next, we add the desired ending inventory and subtract the beginning inventory:

      15,500(Expected Sales Volume)+18,000(Desired Ending Inventory)−16,000(Beginning Inventory)=17,50015,500 (\text{Expected Sales Volume}) + 18,000 (\text{Desired Ending Inventory}) – 16,000 (\text{Beginning Inventory}) = 17,500

      So, the number of units expected to be manufactured in June is:

      b.17,500b. 17,500

      b. 17,500

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