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21 September, 00:43

Delsing Plumbing Company has beginning inventory of 16,500 units, will sell 55,000 units for the month, and desires to reduce ending inventory to 25 percent of beginning inventory. How many units should Delsing produce?

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  1. 21 September, 03:28
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    Answer: 42,625 units

    Explanation:

    Projected sales for the month = 55,000 units

    Beginning inventory = 16,500units

    Desired ending inventory = 25% of 16,500

    = 0.25 * 16,500

    = 4,125 units

    Expected produce = projected sales + desired ending inventory - Beginning inventory

    Therefore Expected production = 55,000 + 4,125 - 16,500

    = 42,625 units
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