Question

Sales for Ross Pro’s Sports Equipment are expected to be 57,000 units for the coming month....

Sales for Ross Pro’s Sports Equipment are expected to be 57,000 units for the coming month. The company likes to maintain 15 percent of unit sales for each month in ending inventory. Beginning inventory is 17,000 units.

How many units should the firm produce for the coming month?
  

Homework Answers

Answer #1

Ans 48550 units

units to produce = Expected Sales + Closing Inventory - Opening Inventory

                          = 57000 + (57000 * 15%) - 17000

                          = 57000 + 8550 - 17000

                          = 48550 units

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