Answer:
Production= 75,000 units
Explanation:
Giving the following information:
Estimated inventory (units), May 1 30,000
Desired inventory (units), May 31 25,000
Expected sales volume (units):
South region 20,000
West region 40,000
North region 20,000
To calculate the production for May, we need to use the following formula:
Production= sales + desired ending inventory - beginning inventory
Production= (20,000 + 40,000 + 20,000) + 25,000 - 30,000
Production= 75,000 units
