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:
0
Comments

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+5775 = 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)0