Production and sales estimates for April are as follows:

Estimated inventory (units), April 19,000

Desired inventory (units), April 30 18,000

Expected sales volume (units):

Area A 3,500 Area B 4,750 Area C 4,250

Unit sales price $20

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

Choose the correct answer:

a. 11,500

b. 10,000

c. 12,500

d. 13,500

Production = 11,500 units

Explanation:

Giving the following information:

Estimated inventory (units), April 19,000

Desired inventory (units), April 30 18,000

Expected sales volume (units):

Area A 3,500

Area B 4,750

Area C 4,250

Total sales = 12,500

To calculate the production for April, we need to use the following formula:

Production = sales + desired ending inventory - beginning inventory

Production = 12,500 + 18,000 - 19,000

Production = 11,500 units