Question

Sartain Corporation is in the process of preparing its annual budget. The following beginning and ending: If the company plans to sell 670,000 units during the year, the number of units it would have to

manufacture during the year would be:
A. 670,000 units
B. 720,000 units
C. 740,000 units
D. 620,000 units

Answer 1

The student's question about the number of units to manufacture is incomplete and lacks enough information. To answer it, we would need the beginning inventory, desired ending inventory, and the expected sales. With complete data, we can apply the formula for calculating the necessary units to manufacture.

Step-by-step explanation:

The question refers to the calculation of the number of units a company needs to manufacture during the year. However, the provided information about economies of scale and the accounting profit example do not apply directly to this specific budgeting question, as the question seems incomplete. A complete budgeting problem would typically include beginning inventory, desired ending inventory, and expected sales to calculate the required production quantity.

Typically, the formula to calculate the number of units to manufacture is: Units to Manufacture = Expected Sales + Desired Ending Inventory - Beginning Inventory. Using this formula, with complete values from Sartain Corporation, we could determine the correct answer. For instance, if the company has a beginning inventory of 20,000 units and wants an ending inventory of 40,000 units, then: Units to Manufacture = 670,000 + 40,000 - 20,000 = 690,000 units.