Textiles Company plans to produce 50 000 units per month during 2019. Sales are projected at 40 000 for January and will increase 2% per month thereafter. There are 15000 units on hand at 1 January 2019. How many units will be on hand at 28 February 2019?

Question

Quizplus · Accepted Answer

To solve this problem, we need to calculate the production and sales for each month from January to February.

January:
- Production: 50,000 units
- Sales: 40,000 units
- Ending inventory: 15,000 + 50,000 - 40,000 = 25,000 units

February:
- Production: 50,000 units x 1.02 = 51,000 units
- Sales: 40,000 units x 1.02 = 40,800 units
- Ending inventory: 25,000 + 51,000 - 40,800 = 35,200 units

Therefore, the answer is D) 34,200.

Textiles Company Plans to Produce 50 000 Units Per Month