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Based on the following production and sales estimates for May, determine the number of units expected...

Based on the following production and sales estimates for May, determine the number of units expected to be manufactured in May.

Estimated inventory (units), May 1 20,000
Desired inventory (units), May 31 15,000
Expected sales volume (units):
South region 30,000
West region 40,000
North region 20,000
Unit sales price $10

a.90,000 units

b.95,000 units

c.85,000 units

d.105,000 units

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Answer #1

Answer- The number of units expected to be manufactured in May = 85000 units.

Explanation- Number of units produced = Total expected sales units+ Desired inventory (units), May 31 - Estimated inventory (units), May 1

= (30000 units+40000 units+20000 units)+ 15000 units- 20000 units

= 90000 units+ 15000 units- 20000 units

= 85000 units

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