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24 November, 17:09

Doe Manufacturing plans to sell 6,000 purple lawn chairs during May, 5,700 in June, and 6,000 during July. The company keeps 15% of the next month's sales as ending inventory. How many units should Doe produce during June?

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  1. 24 November, 18:36
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    Answer: 5,745 units

    Explanation:

    Given that,

    Plans to sell:

    6,000 purple lawn chairs during May

    5,700 in June

    6,000 during July

    company keeps 15% of the next month's sales as ending inventory

    Units should Doe produce during June:

    = Sales in June + Ending inventory (15% of July sales) - opening Inventory (15% of June sales)

    = 5,700 + 900 - 855

    = 5,745 units
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