Question
RS is currently preparing the production budget for Product A and the material purchase budget for material X for the forthcoming year. Each unit of
RS 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 decrease it by 30% by the end of the year. The anticipated opening inventory for material X is 60,000 kgs and in order to avoid stock outs the required closing inventory has been increased to 50,000 kgs. The Sales Director has confirmed a sales requirement of 70,000 units of Product A. How many units of Product A will need to be produced?
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