Thompson Enterprises plans to sell 5,500 blue office chairs during March, 4,900 in April, and 5,800 during May. The company keeps 20% of the next month's sales as ending inventory. How many units should Thompson produce during April? a) 5,080 b) 4,900 c) 5,760 d) Not enough information to determine.

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints
Section: Chapter Questions
Problem 6E: Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The...
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Thompson Enterprises plans to sell 5,500 blue
office chairs during March, 4,900 in April, and
5,800 during May. The company keeps 20% of the
next month's sales as ending inventory. How many
units should Thompson produce during April?
a) 5,080
b) 4,900
c) 5,760
d) Not enough information to determine.
Transcribed Image Text:Thompson Enterprises plans to sell 5,500 blue office chairs during March, 4,900 in April, and 5,800 during May. The company keeps 20% of the next month's sales as ending inventory. How many units should Thompson produce during April? a) 5,080 b) 4,900 c) 5,760 d) Not enough information to determine.
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