A company's product line consists of 40 percent Product A, 40 percent Product B, and 20 percent ProductC. The aggregate plan calls for total production that averages 1,100 units per quarter. Quarter 1 production will be 800 units, quarter 2 production will be 1,400 units, and quarter 3 production will be 1,200 units. How many units of Product A will be produced in quarter 4?
A) 320 units
B) 400 units
C) 440 units
D) 480 units

Question

Quizplus · Accepted Answer

Total production for the year is 4400 units (1100 units/quarter x 4 quarters). Of these, 40% are Product A, which equals 1760 units (4400 units x 0.4). Since 800 units were produced in Q1, 1400 units in Q2, and 1200 units in Q3, the total production up to the end of Q3 is 3400 (800 + 1400 + 1200). Therefore, the remaining units to be produced in Q4 is 1000 (4400 - 3400). Since 40% of the products in Q4 will be Product A, the number of units of Product A to be produced in Q4 is 400 units (1000 units x 0.4). Therefore, the best choice is B.

A Company's Product Line Consists of 40 Percent Product A