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Bambino Sporting Goods makes exceptional gloves that sell well in the spring and early summer season. A projection of units sold is as follows: If
Bambino Sporting Goods makes exceptional gloves that sell well in the spring and early summer season. A projection of units sold is
as follows:
If seasonal production is used, it is assumed that inventory will directly match sales for each month and there will be no inventory
buildup.
The production manager thinks the above assumption is too optimistic and decides to go with level production to avoid being out of
merchandise. He will produce the items at a level of per month.
a What is the ending inventory at the end of each month? Compare the units sold to the units produced and complete the table
below. Do not leave any empty spaces; input a wherever it is required. Enter all values as positive value.
b If the inventory costs $ per unit and will be financed through the bank at percent per annum, what is the monthly financing cost
and the total for the four months? Do not leave any empty spaces; input a wherever it is required.
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