x manufactures a specific auto part. Demand has been very strong and sales for next...

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Accounting

x manufactures a specific auto part. Demand has been very strong and sales for next year (2016) is expected to increase 30% from the current annual sales of 900,000 units, charging $12 per part. x usually holds two months worth of sales as inventory in the year. The production and sales are evenly spread over the year. Att the end of year (2015), the company is expected to have inventory of 150,000 units and the plan capacity of production is 1,100,000 units annually.

Prepare a production schedule for next year (2016)

Based on the Production schedule examine how many units we can produce this year (2015).

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