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Sales of "El Manzano" are expected to be 4,300 units the following month. The sale price...

Sales of "El Manzano" are expected to be 4,300 units the following month. The sale price of each product is $ 70 pesos. The company likes to keep 25% of each month's sales as ending inventory. The initial inventory is 1,900 units and they cost him $ 50 pesos per unit. However the costs have changed and now they will cost you $ 55 pesos per unit. General expenses will be $ 53,000, interest will be paid for $ 8,000 and the tax rate will be 30%

How many units should the company produce for the following month?

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Expert Solution

Answer:3475 units

Sales = 4300 units

Ending Inventory = 4300 units x 25% = 1075 units

Beginning Units = 1900 units

Production Budget = Sales units + Ending Inventory - Beginning Units = 4300+1075 - 1900 = 3475 units

ekkarill92 answered 2 years ago
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