Question

Doe Manufacturing plans to sell 6,000 purple lawn chairs during May, 5,700 in June, and 6,000 during July. The company keeps 15% of the next month's sales as ending inventory. How many units should Doe produce during June?

Answer 1

Answer: 5,745 units

Step-by-step explanation:

Given that,

Plans to sell:

6,000 purple lawn chairs during May

5,700 in June

6,000 during July

company keeps 15% of the next month's sales as ending inventory

Units should Doe produce during June:

= Sales in June + Ending inventory (15% of July sales) - opening Inventory (15% of June sales)

= 5,700 + 900 - 855

= 5,745 units