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Compute the total number of units to be produced

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ABC Mfg. Ltd. produces and sells a single product. Sales budget for the calendar year 2015 by quarter is as under:

Quarter   No. of units to be sold             Quarter     No. of units to be sold
Q.I          22,000                                     Q.III          15,000
Q.II          28,000                                     Q.IV               18,000

The year 2015 is expected to open with an inventory of 5,000 units of finished product and close with an inventory of 4,000 units.
Production is customarily scheduled to provide for two-thirds of the current quarter's sales demand plus one third of the following quarter's demand.

Question 1: Compute the total number of units to be produced for the third quarter of year 2015

Reference no: EM132638515

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