Answers
Answer:
| Details | May |
| Sales units | 1,400 |
| Add: Ending inventory 3,000 * 2% | 60 |
| Total | 1,460 |
| Less: Beginning Inventory 1,400 * 2% | (28) |
| To be produced | 1,432 |
Hence, option 1,432 sofas is the correct answer.
Explanation:
Ending inventory = Maintain 2% inventory of next month's sales.
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