Monday, November 17, 2014

Determine the number of units expected to be manufactured in May.Based on the following pproduction and sales estimates for May:Estimated inventory...

The company must manufacture 75,000 units in
May.


The reason for this is that the company
needs to manufacture enough units to hit their sales targets and to, at the same time,
come up with the desired level of inventory at the end of the
month.


In the three regions mentioned, the company plans to
sell 80,000 units.  However, this is not the number they need to manufacture.  This is
because the company plans to have 5,000 fewer units in inventory at the end of the month
than at the beginning.  Therefore, the firm will sell 5,000 units that are already in
inventory.


80,000 - 5,000 = 75,000 and so the
answer must be cC.

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