Question

Production and sales estimates for May for Cardinal Co. are as follows: Estimated inventory (units), May 1 19,500 Desired inventory (units), May 31 19,300 Expected sales volume (units): Territory W 6,000 Territory X 7,000 Territory Y 8,000 Unit sales price $20 ​

The number of units expected to be sold in May is

Answer 1

21,000 units

Step-by-step explanation:

The number of units expected to sold in May is the combination of expected sales volumes in Territory W,Territory X and Territory Y.

In other words,total sales volume is the addition of all segments' sales volume.

Territory W has expected sales of 6,000 units

Territory X has expected sales of 7,000 units

Territory Y has expected sales of 8 000 units

Total units expected to be sold=6,000+7,000+8,000

=21,000 units

The expected production could be computed as expected sales volume +desired ending inventory minus desired opening inventory