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7 July, 13:16

Production and sales estimates for May for Cardinal Co. are as follows: Estimated inventory (units), May 1 17,100 Desired inventory (units), May 31 19,500 Expected sales volume (units) : Territory W 6,100 Territory X 9,700 Territory Y 7,600 Unit sales price $16.00 The number of units expected to be sold in May is a. 28,080 b. 13,700 c. 21,060 d. 23,400

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  1. 7 July, 15:35
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    The correct answer is D.

    Explanation:

    Giving the following information:

    Estimated inventory (units):

    May 1: 17,100

    May 31: 19,500

    Expected sales volume (units):

    Territory W = 6,100

    Territory X = 9,700

    Territory Y = 7,600

    Total = 23,400

    Number of units expected to be sold = Territory W + Territory X + Territory Y = 23,400

    Production = expected sales + ending inventory - beginning inventory

    Production = 23,400 + 19,500 - 17,100 = 25,800
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