Question

Fiwrt corporation manufactures and sells stainless steel coffee mugs. expected mug sales fiwrt (in units) for the next three months are as follows: october november december budgeted unit sales 30,000 36,000 34,000 fiwrt likes to maintain a finished goods inventory equal to 30% of the next month's estimated sales. how many mugs should fiwrt plan on producing during the month of november? multiple choice 26,800 mugs 34,300 mugs 35,400 mugs 36,000 mugs

Answer 1

Answer: 35,400 mugs

Explanation: sales for next three months.

October. 30,000

November. 36,000

December. 34,000

1. Therefore; since 30% of November would be produced in October we have.

30× 36000 / 100

= 10,800 mugs for November would be produced in October.

2. 36,000mugs - 10800 mugs = 25,200 mugs

30% of December mugs would be produced in November

30 × 34000 / 100

= 10,200

Total mugs to be produced in November

25,200 + 10,200 = 35,400 mugs

Answer 2

In October, we want to produce 30000 units and 30% of Novembers sales; Hence, we will produce 30000+10800 units, of which 10800 will be used for the November sales. In November, we already have 10800 units. We need to sell 36000 and then have also 30% of December sales; 30%*34000=10200. Hence, The total number of mugs needed in November is 36000+10200=46200. However, 10800 are already available from October, hence in November we produce only 46200-10800=35400.