Production and sales estimates for May for Cardinal Co. are as follows: Estimated inventory (units), May 1 17,100 Desired inventory (units), May 31 19,500 Expected sales volume (units) : Territory W 6,100 Territory X 9,700 Territory Y 7,600 Unit sales price $16.00 The number of units expected to be sold in May is a. 28,080 b. 13,700 c. 21,060 d. 23,400

The correct answer is D.

Explanation:

Giving the following information:

Estimated inventory (units):

May 1: 17,100

May 31: 19,500

Expected sales volume (units):

Territory W = 6,100

Territory X = 9,700

Territory Y = 7,600

Total = 23,400

Number of units expected to be sold = Territory W + Territory X + Territory Y = 23,400

Production = expected sales + ending inventory - beginning inventory

Production = 23,400 + 19,500 - 17,100 = 25,800