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EA8.
LO 7.2How many units are estimated to be sold if Skyline, Inc., has a planned production of 900,000 units, a desired beginning inventory of 160,000 units, and a desired ending inventory of 100,000 units?

Respuesta :

pedrocarratore

Answer:

960,000 units

Explanation:

In order to maintain the desired ending inventory, the following relationship must be true.

Beginning inventory + produced units  = expected sales + desired ending inventory

Skyline, Inc. has a planned production of 900,000 units, a desired beginning inventory of 160,000 units, and a desired ending inventory of 100,000 units. Therefore:

[tex]160,000 + 900,000 = Expected\ sales + 100,000\\Expected\ sales=960,000\ units[/tex]

960,000 units are estimated to be sold.

chilljain33

The correct statement will be that the estimated sales of Skyline Inc. will be at 960,000 units produced if the plan of inventories as given matches the practical conditions.

The calculation of production is easy and can be done by putting the values given in the information in the formula as given under the explanation part.

  • We know that the calculation of estimated sales can be derived out of the following formula,

  • [tex]\rm Beginning\ Inventory + Produced\ Units =\ Expected\ Sales\ + Desired\ Ending\ Inventory[/tex]

  • We can derive the expected sales formula by putting the values in the above formula,

  • [tex]160000+900000= \rm Expected\ Sales + 100000\\[/tex]

  • Therefore, expected sales will be,

  • [tex]\rm Expected\ Sales= 900000+160000-100000\\\\\\\rm Expected\ Sales= 960000[/tex]

  • The expected sales are calculated as 960000 units by meeting the requirements as above.

Hence, the correct statement is that Skyline Inc. will be able to do a sales of 960000 units if the above conditions are fulfilled.

To know more about sales inventory, click the link below.

https://brainly.com/question/13821755

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