Production and sales estimates for April are as follows:
Estimated inventory (units), April
19,000
Desired inventory (units), April 30
18,000
Expected sales volume (units):
Area A
3,500
Area B
4,750
Area C
4,250
Unit sales price
$20
The number of units expected to be manufactured in April is:
Answer
11,500
10,000
12,500
13,500
12500
To find the number of units expected to be manufactured in April, you need to calculate the total units needed to meet the desired inventory level and expected sales volume.
Total units needed can be calculated as follows:
Total units needed = Desired inventory + Expected sales volume
Total units needed = 18,000 + (3,500 + 4,750 + 4,250)
Total units needed = 18,000 + 12,500
Total units needed = 30,500
Therefore, the number of units expected to be manufactured in April is 30,500.
To determine the number of units expected to be manufactured in April, we need to calculate the total units needed to meet the desired inventory level on April 30 and subtract the estimated inventory at the beginning of April.
First, let's calculate the desired inventory level on April 30. The desired inventory is given as 18,000 units.
Next, let's calculate the total expected sales volume for the month of April. The expected sales volume is given for each area: Area A (3,500 units), Area B (4,750 units), and Area C (4,250 units). We can sum these values to get the total expected sales volume.
Total expected sales volume = Area A + Area B + Area C
= 3,500 + 4,750 + 4,250
= 12,500 units
To meet the desired inventory level at the end of April, we need to manufacture enough units to cover both the expected sales volume and the desired inventory level.
Total units needed = Desired inventory + Expected sales volume
= 18,000 + 12,500
= 30,500 units
Now, to determine the number of units expected to be manufactured in April, we subtract the estimated inventory at the beginning of April from the total units needed.
Number of units expected to be manufactured = Total units needed - Estimated inventory
= 30,500 - 19,000
= 11,500 units
Therefore, the correct answer is 11,500 units.