Marvel Woodcraft makes furniture. Marvel's expected sales are 20,000 bookcases for the quarter. The company begins the quarter with inventory of 3,000 bookcases and wants to have enough finished bookcases on hand at the end of the quarter to provide for 15% of the next quarter's expected sales of 24,000 bookcases.
-Based on this information, how many bookcases need to be produced during the quarter?

Question

Marvel Woodcraft makes furniture. Marvel's expected sales are 20,000 bookcases for the quarter. The company begins the quarter with inventory of 3,000 bookcases and wants to have enough finished bookcases on hand at the end of the quarter to provide for 15% of the next quarter's expected sales of 24,000 bookcases. 
-Based on this information, how many bookcases need to be produced during the quarter?

Quizplus · Accepted Answer

Marvel needs to have 15% of the next quarter's expected sales (24,000) in inventory at the end of the quarter, which is 3,600 bookcases. They start with 3,000 bookcases. The total needed for sales and ending inventory is 20,000 (sales) + 3,600 (ending inventory) = 23,600. Subtracting the beginning inventory of 3,000 from this total gives 20,600 bookcases that need to be produced.

Marvel Woodcraft Makes Furniture