Based on the following production and sales estimates for May, determine the number of units expected to be manufactured in May. $\begin{array}{l}
\text { Estimated inventory (units), May 1 } & 20,000 \
\text { Desired inventory (units), May } 31 & 15,000\
\text { Expected sales volume (units): }\\text { South region } & 30,000 \
\text { West region } & 40,000 \
\text { North region } & 20,000 \
\text { Unit sales price } & \$ 10
\end{array}$
A) 85,000 units
B) 90,000 units
C) 95,000 units
D) 105,000 units

Question

Quizplus · Accepted Answer

The number of units expected to be manufactured in May is equal to the sum of the desired inventory for May 31 and the expected sales volume for May, minus the estimated inventory for May 1.Desired inventory for May 31 = 15,000 unitsExpected sales volume for May = 30,000 + 40,000 + 20,000 = 90,000 unitsEstimated inventory for May 1 = 20,000 unitsTherefore, the number of units expected to be manufactured in May is 15,000 + 90,000 - 20,000 = 85,000 units.

Based on the Following Production and Sales Estimates for May