Question

Microtech plans to sell 2,000 computers in April; 1,900 in May; and 2,000 in June. The company keeps 15% of the next month's sales as ending inventory. How many units should Microtech produce in May?

Answer 1

Answer:

2,015 computers

Explanation:

The computation of the produce units is shown below:

= Sale units + ending inventory units - beginning inventory units

where,  

Sale units is 2,000 computers

Ending inventory units = 2,000 computers × 15% = 300 computers

Beginning inventory units = 1,900 computers × 15% = 285 computers

Now put these units into the formula above

So, the units would equal to  

= 2,000 computers + 300 computers - 285 computers

= 2,015 computers