Reference no: EM132528506

Paradise Corporation budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for next year.

                        Beginning Inventory             Ending Inventory

Raw material          43,000                             53,000

Finished goods        83,000                             53,000

• Three pounds of raw material are needed to produce each unit of finished product.

Question 1: If Paradise Corporation plans to sell 495,000 units during next year, the number of units it would have to manufacture during the year would be:

Multiple Choice

Option 1: 465,000 units

Option 2: 495,000 units

Option 3: 525,000 units

Option 4: 452,000 units