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Digby's product Deal: Compute production amount for inventory

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Deal is a product of the Digby company. Digby's sales forecast for Deal is 2012 units. Digby wants to have an extra 10% of units on hand above and beyond their forecast in case sales are better than expected. (They would risk the possibility of excess inventory carrying charges rather than risk lost profits on a stock out.) Taking current inventory into account, what will Deal's Production After Adjustment have to be in order to have a 10% reserve of units available for sale?

Inventory on hands = 210 units.

A. 2213 Units
B. 2003 Units
C. 1802 Units
D. 2012 Units

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Solution shows calculations of required production after adjustment have to be in order to have a 10% reserve of units available for sale.

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Deal is a product of the Digby company. Digby's sales forecast for Deal is 2012 units. Digby wants to have an extra 10% of units on hand above and beyond their forecast in case ...

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