Able Company expects to begin the coming year with 12,000 units of product X in the inventory of finished goods. It expects to sell 130,000 units of the product and end the year with 15,800 units in finished goods inventory. Five pounds of material A go into each unit of product X. The company expects to have 2,000 pounds of material A on hand at the beginning of the coming year and wished to end the year with 3,400 pounds in inventory.
a. Refer to Able Company. Calculate the number of units of product X that the company must manufacture in carrying out these plans.
b. Refer to Able Company. Calculate the number of pounds of material A the company must purchase during the year.