Question

lori locks manufactures security safes. the estimated number of safes for the first three months as follows: month sales january 19000 february 11000 march 10000 ending finished goods are equal to 15 percent of next month's sales. april 2016 sales are expected to total 16,000 units. how many safes should lori locks produce in january?

Answer 1

Lori Locks should produce 2,400 safes in January.

Step-by-step explanation:

In order to determine how many safes Lori Locks should produce in January, we need to follow the given information. According to the question, the ending finished goods in a month are equal to 15% of the next month's sales. Given that April's sales are expected to be 16,000 units, we know that at the end of March, Lori Locks should have 15% of 16,000 units as finished goods. This means that the finished goods at the end of March should be 0.15 * 16,000 = 2,400 units.

Now, let's calculate how many safes Lori Locks should produce in January. Since the ending finished goods in March are the same as the sales in April, and we know that at the end of March there will be 2,400 units of finished goods, this means that Lori Locks should produce 2,400 units in January.