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19 April, 11:25

Microtech plans to sell 2,000 computers in April; 1,900 in May; and 2,000 in June. The company keeps 15% of the next month's sales as ending inventory. How many units should Microtech produce in May? 1,885. 1,915. Amount cannot be determined due to insufficient information. 2,200.

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  1. 19 April, 12:57
    0
    1915 units

    Explanation:

    Data provided:

    Number of computer to sell in April = 2,000

    Number of computer to sell in May = 1,900

    Number of computer to sell in June = 2,000

    Ending inventory = 15% of the next month's sale

    Number of units to be produced in may = Number of sales units in may + The ending inventory - The ending inventory of the April

    Therefore,

    Number of units to be produced in may

    = 1,900 + (15% of sales units of June) - 15% of sales unit of May

    or

    = 1,900 + (0.15 * 2,000) - (0.15 * 1,900)

    or

    = 1915 units
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