Ask Question
27 July, 14:01

Drat is a product of the Digby company. Digby's sales forecast for Drat is 1861 units. Digby wants to have an extra 10% of units on hand above and beyond their forecast in case sales are better than expected. (They would risk the possibility of excess inventory carrying charges rather than risk lost profits on a stock out.) Taking current inventory into account, what will Drat's Production After Adjustment have to be in order to have a 10% reserve of units available for sale?

+2
Answers (1)
  1. 27 July, 14:47
    0
    2,047 units

    Explanation:

    The computation of total units of dude's production is shown below:-

    Production units = Sales * (1 + Reserve Percentage)

    = 1,861 * (100 + 10%)

    = 1,861 * 110%

    = 2,047 units

    Note: - Here, we will not consider the current inventory as it is not given in the question.

    Therefore for computing the total units of dude's production we simply applied the above formula.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Drat is a product of the Digby company. Digby's sales forecast for Drat is 1861 units. Digby wants to have an extra 10% of units on hand ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers