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Production and Sales Estimates for June are as Follows

Production and sales estimates for June are as follows

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1 Answer

  1. Units to be Manufactured=Expected Sales Volume+Desired Ending InventoryBeginning 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