Parwin Corporation plans to sell 30,000 units during August. If the company has 11,500 units on hand at the start of the month, and plans to have 12,500 units on hand at the end of... Parwin Corporation plans to sell 30,000 units during August. If the company has 11,500 units on hand at the start of the month, and plans to have 12,500 units on hand at the end of the month, how many units must be produced during the month?
Understand the Problem
The question is asking for the number of units that must be produced by Parwin Corporation during August, given their sales goal, starting inventory, and ending inventory target. To solve this, we will calculate the required production using the formula: Production = Sales + Ending Inventory - Starting Inventory.
Answer
The number of units that must be produced during August is $31,000$.
Answer for screen readers
The number of units that must be produced during August is $31,000$.
Steps to Solve
- Identify the variables We have the following information:
- Sales Goal = 30,000 units
- Starting Inventory = 11,500 units
- Ending Inventory = 12,500 units
-
Apply the production formula Use the production formula:
$$ \text{Production} = \text{Sales} + \text{Ending Inventory} - \text{Starting Inventory} $$ Substituting in the values:
$$ \text{Production} = 30,000 + 12,500 - 11,500 $$ -
Calculate the production requirement Simplifying the equation:
$$ \text{Production} = 30,000 + 12,500 - 11,500 = 31,000 $$
The number of units that must be produced during August is $31,000$.
More Information
Parwin Corporation needs to produce $31,000$ units to meet their sales goals while adjusting for starting and ending inventory levels.
Tips
- Forgetting to account for inventory levels: Make sure to include both starting and ending inventory in your calculations to find the correct production requirement.
- Arithmetic errors: Double-check your calculations to avoid simple mistakes in addition and subtraction.
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