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Ngome is currently preparing the production budget for product a and the material purchase budget for material x for the forthcoming year. Each unit of

Ngome is currently preparing the production budget for product a and the material purchase budget for material x for the forthcoming year. Each unit of product a requires 5 kgs of material x. The anticipated opening inventory for product a is 5,000 units and the company wishes to increase the closing inventory by 30% by the end of the year. The anticipated opening inventory for material x is 50,000 kgs and in order to avoid stock outs the required closing inventory has been increased to 60,000 kgs. The sales director has confirmed a sales requirement of 70,000 units of product a. How many units of product a will needtobeproduced?

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