Question

Production and sales estimates for May for Cardinal Co. are as follows: Estimated inventory (units), May 1 17,100 Desired inventory (units), May 31 19,500 Expected sales volume (units): Territory W 6,100 Territory X 9,700 Territory Y 7,600 Unit sales price $16.00 The number of units expected to be sold in May is a.28,080 b.13,700 c.21,060 d.23,400

Answer 1

The correct answer is D.

Step-by-step explanation:

Giving the following information:

Estimated inventory (units):

May 1: 17,100

May 31: 19,500

Expected sales volume (units):

Territory W= 6,100

Territory X= 9,700

Territory Y= 7,600

Total= 23,400

Number of units expected to be sold= Territory W + Territory X + Territory Y= 23,400

Production= expected sales + ending inventory - beginning inventory

Production= 23,400 + 19,500 - 17,100= 25,800