Tarheel Company produces and sells specialized portfolio cases. It expects to sell 20,000 cases next year at $75 each. There is a beginning inventory of 1,500 cases and the company wants to have an ending inventory equal to 30 percent of this year's sales. How many cases need to be produced?

Question

Quizplus · Accepted Answer

Tarheel Company aims to have an ending inventory equal to 30% of this year's sales, which is 30% of 20,000 cases = 6,000 cases. The total needed is sales (20,000) + ending inventory (6,000) - beginning inventory (1,500) = 24,500 cases.

Tarheel Company Produces and Sells Specialized Portfolio Cases