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a company plans to sell 2400 units of product R next year . Opening inventory of R is expected to be 2000 units and company pplans to increase inventory by 25% by the end of the year . How many units of product R should be produced next year ?
sir we should use :
productiuon = sales +closing inventory – opening inventory
so on what we should take 25% on sales or opening inventory ?
and how to do the question .?Production does not equal sales + opening inventory – closing inventory!
Sales = opening inventory + production – closing inventory.
If they plan to increase inventory by 25%, then the closing inventory will be 25% more than the opening inventory.
thank you john moffat !!!
actually i wasn knowing the formula but when i typed it got wrong but the information you gave down of that gave me the answer 🙂
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