At the beginning of the year,Outdoor Living Corporation has 500 umbrellas in inventory.The company plans to sell 5,200 umbrellas during the year and wants to have 1,200 umbrellas in inventory at the end of the year.How many umbrellas must Outdoor Living Corporation produce during the year?

Question

Quizplus · Accepted Answer

To find out how many umbrellas Outdoor Living Corporation must produce during the year, we need to calculate the total number of umbrellas the company will need to have (500 starting inventory + 5,200 planned sales + 1,200 desired ending inventory). 
This gives us a total of 6,900 umbrellas needed. Therefore, the company must produce 6,900 - 500 = 6,400 umbrellas during the year. 
Therefore, the best choice is B (5,900 umbrellas).

At the Beginning of the Year,Outdoor Living Corporation Has 500