Question

Production and sales estimates for March for Robin Co. are as follows: Estimated inventory (units), March 1 18,500 Desired inventory (units), March 31 20,000 Expected sales volume (units): Territory M 6,800 Territory L 8,300 Territory L 7,300 Unit sales price $15 The number of units expected to be manufactured in March is

Answer 1

Robin Co.

The number of units expected to be manufactured in March is:

= 23,900 units.

Step-by-step explanation:

a) Data and Calculations:

Estimated inventory (units), March 1 = 18,500

Desired inventory (units), March 31 = 20,000

Expected sales volume (units): Territory M 6,800 Territory N 8,300 Territory L 7,300

Unit sales price = $15

Total expected sales volume (units) = 22,400

Production estimation:

Total expected sales units = 22,400

Desired inventory (units), March 31 20,000

Units available for sale = 42,400

Estimated inventory (units), March 1 18,500

Units expected to be manufactured 23,900