Question

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?

Answer 1

Answer:

The 1900 units should Microtech produce in May

Explanation:

For computing how many units produced in the May month, we use the information which is mentioned in the question.

Since in the question, it is given that 15% of the next month sales is term as ending inventory

So, 15% of June month which equals to

= $2,000 × 15%

= $300

And, the remaining 85% is for may month

So, 85% × 1,900 = 1,615

Now add these values

So, the amount would be equal to

= 1,615 + 300

= 1,900 units

Hence, 1900 units should Microtech produce in May