A Manufacturer Has 4000 Units of Product X in Stock

question 57

Short Answer

A manufacturer has 4000 units of product x in stock and is now selling it at $10 per unit.Next month the unit price will increase by $2.The manufacturer wants the total revenue received from the sale of the 4000 units to be no less than $45,000.What is the maximum number of units that can be sold this month?

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Definitions:

Periodic system

A periodic system is an inventory management approach where inventory levels and the cost of goods sold are calculated at the end of each accounting period, rather than continuously.

Beginning inventory

This is the value of all the inventory (raw materials, work-in-process, and finished goods) that a company has at the start of an accounting period.

LIFO

An inventory valuation method that assumes the last items placed into inventory are the first ones sold; stands for Last In, First Out.

Cost

A payment of cash (or a commitment to pay cash in the future) for the purpose of generating revenues.