Next Year's Sales Forecast Shows That 20,000 Units of Product

question 173

Multiple Choice

Next year's sales forecast shows that 20,000 units of Product A and 22,000 units of Product B are going to be sold for prices of $10 and $12 per unit, respectively. The desired ending inventory of Product A is 20% higher than its beginning inventory of 2,000 units. The beginning inventory of Product B is 2,500 units. The desired ending inventory of Product B is 3,000 units.
-Budgeted production of Product B for the year would be

• A)24,500 units
• B)22,500 units
• C)26,500 units
• D)23,200 units

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