Green Plants plans to sell 160 potted plants during April and 120 units in May.Green Plants keeps 15% of the next month's sales as ending inventory.How many units should Green Plants produce during April?

Question

Quizplus · Accepted Answer

Green Plants should produce 154 units during April. This is because they need to have 15% of May's sales (120 units) on hand as ending inventory, which is 18 units. Adding this to the 160 units they plan to sell in April gives a total of 178 units that they need to have available. Since they already have 15% of May's sales on hand (18 units), they need to produce 178 - 18 = 154 units during April.

Green Plants Plans to Sell 160 Potted Plants During April