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Question - Cari Chair Company manufactures rocking chairs. The estimated number of rocking chair sales for each of the last three months of Year 1 is as follows:
Month Unit Sales
October 10,000
November 14,000
December 15,000
Finished goods inventory at the end of November was 4,000 units. Desired ending finished goods inventory is equal to 25 percent of the next month's sales. Cari Chair expects to sell the chairs for $100 each. January sales for Year 2 are projected at 16,000 chairs.
Required - How many chairs should Cari produce in December?
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