Question

Tickbite company has beginning inventory of​ 11,000 units and expected sales of​ 20,000 units. if the desired ending inventory is​ 18,000 units, how many units should be​ produced?

a. ​27,000
b. ​9,000
c. ​13,000
d. ​40,000

Answer 1

Tickbite company should produce 27,000 units to achieve the desired ending inventory of 18,000 units, considering the expected sales of 20,000 units and a beginning inventory of 11,000 units.

Step-by-step explanation:

The Tickbite company needs to calculate how many units should be produced based on its beginning inventory, expected sales, and desired ending inventory. To determine the number of units that need to be produced, we use the following formula:

Units to Produce = Expected Sales + Desired Ending Inventory - Beginning Inventory

By applying the formula:

Units to Produce = 20,000 + 18,000 - 11,000

This calculation results in 27,000 units that need to be produced to meet the expected sales and desired ending inventory levels.

Tickbite company should produce 27,000 units to meet its goals. This is the number required to have 18,000 units in ending inventory after accounting for expected sales of 20,000 units.

Answer 2

The correct answer is option (a) 27,000 units.

To determine the number of units that should be produced, you can use the following formula:

Units to be Produced=Expected Sales+Desired Ending Inventory−Beginning Inventory

In this case:

Units to be Produced=20,000+18,000−11,000

Units to be Produced=27,000

So, the correct answer is option (a) 27,000 units.