Question

Meridian company has a beginning inventory of 2800. They intended to sell 100000 units for the current month and they wish to reduce ending inventory to 40% of beginning inventory. How many units should the company produce?​

Answer 1

Answer:

98320 units

Step-by-step explanation:

opening inventory=2800 units

given ending inventory be reduced to 40% of beginning inventory

ending inventory =2800*40%=1120

units to be produced =sales+closing inventory-opening inventory

=100000+1120-2800

=98320 units