Production and sales estimates for April for the Rachel Co. are as follows: Estimated inventory (units), April 1 19,300 Desired inventory (units), April 30 25,000 Expected sales volume (units) 28,000 Unit sales price $15 The number of units expected to be manufactured in April is: A. 8,700 B. 16,300 C. 33,700 D. 53,000

Answer: Option (c) is correct.

33,700 units ⇒ This much units expected to be manufactured in April.

Explanation:

On april 1, Estimated inventory = 19,300

on April 30, Desired inventory = 25000

Expected sales volume = 28000

Unit sales price = $15

The number of units expected to be manufactured in April is as follows:

Production plan for the current month = Sales Volume + (Desired inventory - Estimated inventory)

= 28000 + (25000 - 19300)

= 28000 + 5700

= 33,700 units ⇒ This much units expected to be manufactured in April.