Answer:
509
Explanation:
If the company has "46 units on hand" during the second quarter, this means that their stock for the second quarter already has a safety start of 46 units.
A safety start of 10% for the third quarter is:
[tex]SS_{3Q} = .1*550 = 55\ units[/tex]
Since the company expects to sell 500 units during the current quarter, needs to have 55 units of safety start for the next quarter and already has 46 units on hand, the total number of units that need to be produced in the second quarter is:
[tex]P_{2Q} = 500+55-46\\P_{2Q} = 509[/tex]
