2.1_Budgeting..... Help

sgafo Registered Posts: 21 Dedicated contributor 🦉

Can anyone help me please I'm stuck on the following question 1.2 (A)

Please please don't ignore :crying:



  • Nps
    Nps Registered Posts: 782
    Which bits in particular are you stuck on (this would help as it saves people typing out explanations to bits you understand)?

    I assume you are able to work out the amount of closing inventory required for each week.

    The saleable production is then the sales volume + the closing inventory required - the opening inventory (as already in existence so doesn't need to be produced) = 400+57-75 = 382

    The question tells you that 15% of all production is rejected so the figure you got above only represents 85% of total production. So if 382 is 85%, the 15% rejected must be (382/85*100)*15%=68

    Therefore the total amount of units which need to be produced that week is 450 (382+68)
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