EP Products has 2,000 units of its product on hand at the beginning of January. Sales in January and February are forecast to be 16,000 units and 12,000 units, respectively. The company plans to end January with sufficient inventory to provide 25% of February's sales needs. What number of units must EP Products schedule for production in January?
A) 17,000
B) 16,000
C) 19,000
D) 15,000

Question

Quizplus · Accepted Answer

EP Products needs to end January with 25% of February's sales, which is 3,000 units (25% of 12,000). Starting with 2,000 units and needing 16,000 for January sales, they need 17,000 units in total (16,000 + 3,000 - 2,000).

EP Products Has 2,000 Units of Its Product on Hand