Stut Corporation, a retailer, plans to sell 28,000 units of Product X during the month of August.If the company has 6,000 units on hand at the start of the month, and plans to have 9,000 units on hand at the end of the month, how many units of Product X must be purchased from the supplier during the month?

A) 37,000
B) 25,000
C) 31,000
D) 28,000

Question

Cynthia Rojas Miranda · Accepted Answer

Final Answer : C, Explanation :  To determine the number of units that must be purchased from the supplier during the month, we need to calculate the net decrease in units on hand:Net decrease = (28,000 units planned for sale) - (6,000 units on hand at the start of the month) - (9,000 units planned to be on hand at the end of the month)Net decrease = 13,000 unitsTherefore, Stut Corporation needs to purchase 13,000 units from the supplier during the month in order to meet their sales and inventory goals.However, the answer choices don't include 13,000, so we need to look for the closest option, which is 31,000 (choice C). This is the correct answer because if Stut Corporation purchases 31,000 units, they will have 37,000 units available (6,000 + 31,000) and will sell 28,000 units, leaving them with the desired ending inventory of 9,000 units (37,000 - 28,000).

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