Question

The burlington company has 12,000 units in beginning finished goods. if sales are expected to be 60,000 units for the year and burlington desires ending finished goods of 15,000 units, how many units must burlington produce?
a.57,000
b.60,000
c.75,000
d.63,000

Answer 1

Burlington has 12000 units on hand. It predicts sales of 60,000 for the year. So 60,000-12000=48,000 to produce still in the year. And if Burlington wants to end up the year with a surplus of 15,000 units then it needs to produce 48,000 + 15000= 63,000 units.