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29 September, 06:31

A March sales forecast projects 10,000 units of Product A and 12,000 units of Product B are going to be sold at prices of $11 and $13, respectively. The desired ending inventory of Product A is 20% higher than the beginning inventory, which was 1,000 units. Total March sales for Product A are anticipated to be:

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  1. 29 September, 08:10
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    March sales = 10000 units

    March production = 10400 units

    Explanation:

    Giving the following information:

    A March sales forecast projects 10,000 units of Product A and 12,000 units of Product B are going to be sold at prices of $11 and $13, respectively.

    The desired ending inventory of Product A is 20% higher than the beginning inventory, which was 1,000 units.

    Product sales of Product A = 10000 units

    Production of product A = ending inventory + projected sales - beginning inventory

    Production of product A = (1000*1.20) + 10200 - 1000 = 10400units
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