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Sales for Ross Pro’s Sports Equipment are expected to be 4,800 units for the coming month....

Sales for Ross Pro’s Sports Equipment are expected to be 4,800 units for the coming month. The company likes to maintain 10 percent of unit sales for each month in ending inventory. Beginning inventory is 300 units. How many units should the firm produce for the coming month?

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Number of units to be Produced = Ending Inventory + Sales - Beginning inventory

= 10% (Sales ) + 4,800 units - 300 units

= 10% (4,800 units ) + 4,800 units - 300 units

= 480 units + 4,800 units - 300 units

= 4,980 units

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