Question

A March sales forecast projects 10,000 units of Product A and 12,000 units of Product B are going to be sold at prices of $11 and $13, respectively. The desired ending inventory of Product A is 20% higher than the beginning inventory, which was 1,000 units. Total March sales for Product A are anticipated to be:

Answer 1

March sales= 10000 units

March production= 10400 units

Step-by-step explanation:

Giving the following information:

A March sales forecast projects 10,000 units of Product A and 12,000 units of Product B are going to be sold at prices of $11 and $13, respectively.

The desired ending inventory of Product A is 20% higher than the beginning inventory, which was 1,000 units.

Product sales of Product A= 10000 units

Production of product A= ending inventory + projected sales - beginning inventory

Production of product A= (1000*1.20) + 10200 - 1000= 10400units