Sargent.Com plans to sell 2,000 purple lawn chairs during May, 1,900 in June, and 2,000 during July.The company keeps 15% of the next month's sales as ending inventory.How many units should Sargent.Com produce during June?

Question

Quizplus · Accepted Answer

For June, Sargent.Com plans to sell 1,900 units but also needs to keep 15% of July's sales (2,000 units) as ending inventory, which is 300 units (15% of 2,000). Therefore, they need to have 1,900 + 300 = 2,200 units available in June. However, they already plan to have 15% of June's sales (1,900 units) as ending inventory for May, which is 285 units. So, the total production for June should be 2,200 - 285 = 1,915 units.

SargentCom Plans to Sell 2,000 Purple Lawn Chairs During May