Question
Connor Company produces speaker systems for cars. Estimated unit sales in January are 50,000; in February 42,000; and in March 44,000. Each unit is priced
Connor Company produces speaker systems for cars. Estimated unit sales in January are 50,000; in February 42,000; and in March 44,000. Each unit is priced at $80. Connor wants to have 30% of the following month's sales in ending inventory. That requirement was met on January 1. Each speaker system requires 3 boxes and 15 yards of wire. Boxes cost $5.00 and wire is $0.80 per yard. Connor wants to have 25% of the following month's production needs in ending raw materials inventory. On January 1, Connor had 26,000 boxes and 90,000 yards of wire in inventory. How many units does Connor expect to produce in February?
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