Fairway's April sales forecast projects that 6,000
widgets and 6,125 wackers will sell at prices of
$10.50 and $10.00, respectively. The desired ending
inventory of widgets is 30% higher than the
beginning inventory, which was 1,000 units.
Budgeted production of widgets would be:
A. 6,000 units.
B. 7,000 units.
C. 6,300 units.
D. 7,300 units.
E. Some other amount.
Budgeted production of widgets would be?
If the ending inventory is 30% greater than the beginning inventory then the ending inventory needs to be 1300.
So if the company currently has 1000 units they need to produce an additional 300 + 6000 widgets to sell during the time period so the answer is C - 6300
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