Denny Door Company has budgeted door sales as follows: Finished goods inventory at February 28 will be 8,000 units, but the company is making an effort to reduce inventory and its new policy is that inventory at the end of the month should be 10% of the budgeted sales for the following month. How many units should Denny Door Company produce in March?

Question

Denny Door Company has budgeted door sales as follows:  Finished goods inventory at February 28 will be 8,000 units, but the company is making an effort to reduce inventory and its new policy is that inventory at the end of the month should be 10% of the budgeted sales for the following month. How many units should Denny Door Company produce in March?

Quizplus · Accepted Answer

Denny's production budget is calculated as follows:
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Denny Door Company Has Budgeted Door Sales as Follows