Tod Table Company manufactures tables. The estimated number of table sales for each of the last three months of Year 1 is as follows:
$$\begin{array} { l c }
\underline{\text { Month }} & \underline{\text { Unit Sales }} \
\text { October } & 10,000 \
\text { November } & 14,000 \
\text { December } & 7,500
\end{array}$$ Finished goods inventory at the end of November was 2,000 units. Desired ending finished goods inventory is equal to 25 percent of the next month's sales. Tod Table expects to sell the tables for $100 each. January sales for Year 2 are projected at 16,000 tables.
How many tables should Tod produce in December?

Question

Tod Table Company manufactures tables. The estimated number of table sales for each of the last three months of Year 1 is as follows:
$$\begin{array} { l c } 
\underline{\text { Month }} & \underline{\text { Unit Sales }} \
\text { October } & 10,000 \
\text { November } & 14,000 \
\text { December } & 7,500
\end{array}$$ Finished goods inventory at the end of November was 2,000 units. Desired ending finished goods inventory is equal to 25 percent of the next month's sales. Tod Table expects to sell the tables for $100 each. January sales for Year 2 are projected at 16,000 tables.
How many tables should Tod produce in December?

Quizplus · Accepted Answer

The Answer of Tod Table Company manufactures tables. The estimated number of table sales for each of the last three months of Year 1 is as follows:
$$\begin{array} { l c } 
\underline{\text { Month }} & \underline{\text { Unit Sales }} \
\text { October } & 10,000 \
\text { November } & 14,000 \
\text { December } & 7,500
\end{array}$$ Finished goods inventory at the end of November was 2,000 units. Desired ending finished goods inventory is equal to 25 percent of the next month's sales. Tod Table expects to sell the tables for $100 each. January sales for Year 2 are projected at 16,000 tables.
How many tables should Tod produce in December?

Tod Table Company Manufactures Tables Finished Goods Inventory at the End of November Was 2,000