Select Manufacturing sells a variety of office products including two-drawer file cabinets. On June 30, the company had 1,200 cabinets in inventory. The company's policy is to maintain a cabinet inventory equal to 20% of next month's sales. The company expects the following sales activity for the third quarter of the year: In addition, October's sales are projected to be 10,000 cabinets. What is the total required production for the third quarter?
A) 23,600 cabinets
B) 24,400 cabinets
C) 25,600 cabinets
D) 26,800 cabinets

Question

Select Manufacturing sells a variety of office products including two-drawer file cabinets. On June 30, the company had 1,200 cabinets in inventory. The company's policy is to maintain a cabinet inventory equal to 20% of next month's sales. The company expects the following sales activity for the third quarter of the year:  In addition, October's sales are projected to be 10,000 cabinets. What is the total required production for the third quarter?
A) 23,600 cabinets 
B) 24,400 cabinets 
C) 25,600 cabinets 
D) 26,800 cabinets

Quizplus · Accepted Answer

The Answer of Select Manufacturing sells a variety of office products including two-drawer file cabinets. On June 30, the company had 1,200 cabinets in inventory. The company's policy is to maintain a cabinet inventory equal to 20% of next month's sales. The company expects the following sales activity for the third quarter of the year:  In addition, October's sales are projected to be 10,000 cabinets. What is the total required production for the third quarter?
A) 23,600 cabinets 
B) 24,400 cabinets 
C) 25,600 cabinets 
D) 26,800 cabinets

Select Manufacturing Sells a Variety of Office Products Including Two-Drawer