Company X produced 120,000 units and sold 110,000 units during the year (see Figure 12-1). Therefore, the
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Company X produced 120,000 units and sold 110,000 units during the year (see Figure 12-1). Therefore, the company increased its inventory 10,000 units. Does this increase seem reasonable? Or is the company’s production output compared with its sales volume out of kilter?
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