Fiwrt corporation manufactures and sells stainless steel coffee mugs. expected mug sales fiwrt (in units) for the next three months are as follows: october november december budgeted unit sales 30,000 36,000 34,000 fiwrt likes to maintain a finished goods inventory equal to 30% of the next month's estimated sales. how many mugs should fiwrt plan on producing during the month of november? multiple choice 26,800 mugs 34,300 mugs 35,400 mugs 36,000 mugs

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Business

Lauren

2 May, 10:03

Fiwrt corporation manufactures and sells stainless steel coffee mugs. expected mug sales fiwrt (in units) for the next three months are as follows: october november december budgeted unit sales 30,000 36,000 34,000 fiwrt likes to maintain a finished goods inventory equal to 30% of the next month's estimated sales. how many mugs should fiwrt plan on producing during the month of november? multiple choice 26,800 mugs 34,300 mugs 35,400 mugs 36,000 mugs

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Tyke · Answer 1

In October, we want to produce 30000 units and 30% of Novembers sales; Hence, we will produce 30000+10800 units, of which 10800 will be used for the November sales. In November, we already have 10800 units. We need to sell 36000 and then have also 30% of December sales; 30%*34000=10200. Hence, The total number of mugs needed in November is 36000+10200=46200. However, 10800 are already available from October, hence in November we produce only 46200-10800=35400.