Trago Company Manufactures a Single Product and Has a JIT

question 163

Multiple Choice

Trago Company manufactures a single product and has a JIT policy that ending inventory must equal 5% of the next month's sales.It estimates that May's ending inventory will consist of 14,000 units.June and July sales are estimated to be 280,000 and 290,000 units,respectively.Compute the number of units to be produced in June.

• A)290,000.
• B)294,500.
• C)280,500.
• D)280,000.
• E)266,000.

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Definitions:

Whales

Large marine mammals belonging to the order Cetacea, known for their intelligence, aquatic adaptation, and often large size.

Major Premise

In a categorical syllogism, the premise in which the major term appears.

Syllogism

A form of deductive reasoning that consists of two premises followed by a conclusion, based on the relationship between the premises.

Mammals

Warm-blooded vertebrates characterized by the presence of mammary glands which females use to nourish their young.