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2 March, 12:53

Production and sales estimates for May for Cardinal Co. are as follows: Estimated inventory (units), May 1 19,500 Desired inventory (units), May 31 19,300 Expected sales volume (units) : Territory W 6,000 Territory X 7,000 Territory Y 8,000 Unit sales price $20

The number of units expected to be sold in May is

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  1. 2 March, 15:51
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    21,000 units

    Explanation:

    The number of units expected to sold in May is the combination of expected sales volumes in Territory W, Territory X and Territory Y.

    In other words, total sales volume is the addition of all segments' sales volume.

    Territory W has expected sales of 6,000 units

    Territory X has expected sales of 7,000 units

    Territory Y has expected sales of 8 000 units

    Total units expected to be sold=6,000+7,000+8,000

    =21,000 units

    The expected production could be computed as expected sales volume + desired ending inventory minus desired opening inventory
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