Doxy company is considering its forthcoming projections for budget purposes. Doxy’s projected sales for next year and beginning and ending inventory data are as follows:
Sales 50,000 units
Beginning inventory 4,000 units
Desired ending inventory 8,000 units
The selling price is $40 per unit. Each unit requires four pounds of material which costs $6 per pound. The beginning inventory of raw materials is 12,000 pounds. The company wants to have 3,000 pounds of material in inventory at the end of the year.
According to Doxys' production budget, how many units should be produced?