Question

Oriole Company plans to sell 9000 purple lawn chairs during May, 3700 in June, and 9000 during July. The company keeps 15% of the next month’s sales as ending inventory. How many units should Oriole produce during June?

Answer 1

Answer:

Production= 4,495 units

Explanation:

Giving the following information:

Sales (in units):

June= 3,700

July= 9,000

The company keeps 15% of the next month’s sales as ending inventory.

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

Production= sales + desired ending inventory - beginning inventory

Production= 3,700 + (9,000*0.15) - (3,700*0.15)

Production= 4,495 units