Production and sales estimates for May for Cardinal Co. are as follows:


Estimated inventory (units), May 1 18,100

Desired inventory (units), May 31 19,200

Expected sales volume (units):


Territory W 6,300

Territory X 8,700

Territory Y 7,500

Unit sales price $13.00


The number of units expected to be sold in May is:___________


a.20,790

b.23,100

c.14,100

d.27,720

Respuesta :

Answer:

Total sales    22,500  

purchase/production needs 23,600

Explanation:

We are expense for the units epxected to be sold which, is the sum of each territory expected sales.

Sales per territory:

Territory W     6,300

Territory X      8,700

Territory Y      7,500  

Total sales    22,500  

Then, purchase needs will be:

desired inventroy                   19,200

total sales in the period         22,500  

total good needs                     41,700

less beginning                        (18,100)  

purchase/production needs 23,600

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