Question

Production and sales estimates for May for Cardinal Co. are as follows: Estimated inventory (units), May 1 19,500 Desired inventory (units), May 31 19,300 Expected sales volume (units): Area W 6,000 Area X 7,000 Area Y 8,000 Unit sales price $20 The number of units expected to be sold in May is a.21,000 b.3,700 c.18,300 d.22,800

Answer 1

a.21,000

Step-by-step explanation:

The computation of the number of units expected to be sold in the month of May is shown below:

= Expected sales volume in units in Area X + Expected sales volume in units in Area Y + Expected sales volume in units in Area Z

= 6,000 units + 7,000 units + 8,000 units

= 21,000 units

We simply added these three sales volume in unit so that the expected number of unit sold could come