Waterloo, Ltd. manufactures a component used in aircraft navigation systems. Demand has been strong and the executive staff at Waterloo is planning for next year. Yesterday, you were called into a budgeting meeting where production plans were being reviewed. You leam that the inventory policy at Waterloo is to hold one and one-half months' worth of sales (to avoid issues with transportation disruptions). The sales budget for next year is 660,000 units, spread evenly over the year. Because of an unexpected increase in demand, inventory at the end of this year is expected to be only 30,000 units. The capacity of the plant is 70o0,000 units annually. Required: a. What production level next year will be required to meet the targets? (Do not round intermediate calculations.) Required producton in unts

Waterloo, Ltd. manufactures a component used in aircraft navigation systems. Demand has been strong and the executive staff at Waterloo is planning for next year. Yesterday, you were called into a budgeting meeting where production plans were being reviewed. You leam that the inventory policy at Waterloo is to hold one and one-half months' worth of sales (to avoid issues with transportation disruptions). The sales budget for next year is 660,000 units, spread evenly over the year. Because of an unexpected increase in demand, inventory at the end of this year is expected to be only 30,000 units. The capacity of the plant is 70o0,000 units annually. Required: a. What production level next year will be required to meet the targets? (Do not round intermediate calculations.) Required producton in unts

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

What production level next year will be required to meet the targets?

Waterloo, Ltd. manufactures a component used in aircraft navigation systems. Demand has been strong, and the executive staff at Waterloo is planning for next year. Yesterday, you were called into a budgeting meeting where production plans were being reviewed. You learn that the inventory policy at Waterloo is to hold one and one-half months' worth of sales (to avoid issues with transportation disruptions). The sales budget for next year is 660,000 units, spread evenly over the year. Because of an unexpected increase in demand, inventory at the end of this year is expected to be only 30,000 units. The capacity of the plant is 700,000 units annually.

Required:
a. What production level next year will be required to meet the targets? (Do not round intermediate calculations.)

*There is a text box labeled "Required production in units" for entering the answer.*

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