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    Dahin's Avatar
    Dahin Posts: 1, Reputation: 1
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    #1

    Feb 2, 2011, 04:59 PM
    How many units should the company produce?
    Sales 6000 in March
    50% increase in April
    Company will maintain 5% of expected unit sales For April ending inventory
    Beginning Inv. For April 200 units
    ukaserex's Avatar
    ukaserex Posts: 1, Reputation: 1
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    #2

    Jun 29, 2011, 02:50 PM
    Sales 6000 in March
    50% increase in April
    Company will maintain 5% of expected unit sales For April ending inventory
    Beginning Inv. For April 200 units

    With a 50% increase in Sales for April, that means they will sell 9000 units.
    6000*50%= 3000. 3000 +6000 = 9000.

    The company has 200 units to start with. So they need 8800 to have enough - but - they want to have 5% of "expected unit sales" (which is .05 *9000 = 450)to start for the next month.

    So, 8800 + 450 =9250 is the total production required by the company.

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