Ask Question
BusinessBusiness
28 December, 09:09

1. A company expects to sell 400 units of Product X in January and then expects sales to increase by 10% per month. If Product X sells for $10 each, the total sales for the first quarter of the year will be $

2. A manufacturing company expects to sell 12,000 units in August and 15,000 units in September. The company desires to have an ending inventory of 80% of the next month's sales. If inventory on August 1 is 8,000 units, then the company should produce units in August.

3. A manufacturer requires an ending inventory of 5,000 units. Their budgeted unit sales are 20,000 units and beginning finished goods inventor is 3,000 units. The units to be produced is

+1
Answers (2)
  1. 28 December, 10:15
    0
    1. Sales = $13,240

    2. 13,600 units

    3. 22,000 units

    Explanation:

    1. The sales are increasing by 10% every month. So,

    January Sales in units = 400 February Sales in units = 400 * 1.1 = 440 March Sales in units = 440 * 1.1 = 484

    January Sales = 400 * $10 ⇒ $4000 February Sales = 440 * $10 ⇒ $4400 March Sales = 484 * $10 = 4840 Total Quarter Sales = 4000 + 4400 + 4840 = $13240

    2. The closing inventory for July or opening Inventory for August should have been 80% of August sales,

    12000 * 0.8 = 9600 units Shortfall in Opening Inventory = 9600 - 8000 = 1600 units

    The ending inventory for the August should be equal to 80% of September Sales, So

    15000 * 0.8 = 12000 units So, August production should be = 1600 + 12000 = 13600 units

    3. Let the Units to be Produced be x,

    Sales = Opening Inventory + Production - Closing Inventory

    20000 = 3000 + x - 5000

    20000 + 5000 = 3000 + x

    25000 - 3000 = x

    22000 = x
  2. 28 December, 11:06
    0
    1. $13,240

    2. 16,000 units

    3. 22,000 units.

    Explanation:

    The question is answered as follows

    Part 1: Determine the total sales for the first quarter as follows

    January Sales in Units = 400 Units

    February Sales Units = 400 x 110% or 1.1 = 440 units

    March Sales Unites = 440 x 110% or 1.1. = 484 units

    Total Sales = 1,324 x $10 = $13, 240

    Part 2: Determine Production In August

    Production in August making use of the relevant figures

    = Expected units + (Expected units in september x 80%) - Inventory on August 1

    = 12,000 + (0.8 x 15,000) - 8000 = 16,000 Units

    Part 3: Determine the Production Units as follows

    Sales Units + Closing Inventory of finished goods - The Opening Inventory of finished goods

    = 20,000 units + 5,000 units - 3000 units = 22,000 units
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “1. A company expects to sell 400 units of Product X in January and then expects sales to increase by 10% per month. If Product X sells for ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
All of the following are examples of marketing outcome data except which? Group of answer choices: O sales reports by geographic region O accounting records O customer phone calls O sales people's call reports O repeat sales reports
Answers (1)
Assume a U. S.-based MNC is borrowing Romanian leu (ROL) at an interest rate of 8% for one year. Also assume that the spot rate of the leu is $.00012 and the one-year forward rate of the leu is $.00010.
Answers (1)
A CPA recently has come to expect higher prices for expert tax advice in the near future. We would expect: a. the CPA to supply more expert tax advice now then she was supplying previously. b.
Answers (1)
Jackson cut the national budget and the national debt but increased the number of federal employees. how do you explain this paradox?
Answers (1)
Blue Fin started the current year with assets of $709,000, liabilities of $354,500 and common stock of $209,000. During the current year, assets increased by $409,000, liabilities decreased by $54,500 and common stock increased by $284,000.
Answers (1)
New Questions in Business
Non-federal or chartered banks who broker or lend for mortgages must be registered with
Answers (1)
Carr Company produces a single product. Last year, Carr manufactured 27,120 units and sold 21,800 units.
Answers (1)
Which of the following is true regarding the internal rate of return for a project? a. Managers may believe (in most cases, incorrectly) that the internal rate of return is the compounded rate of return earned by the initial investment. b.
Answers (1)
Monica wants to sell her share of an investment to Barney for $80,000 in 5 years. If money is worth 6% compounded semiannually, what would Monica accept today?
Answers (1)
Grimpy's is a chain of stores that specializes in healthcare and wellness products. As the company is expanding, the management wants to take steps to hire more women.
Answers (2)
Home » Business » 1. A company expects to sell 400 units of Product X in January and then expects sales to increase by 10% per month. If Product X sells for $10 each, the total sales for the first quarter of the year will be $ 2.
Sign Up Forgot Password?