2-person spa requires a pump motor, which sunland purchases for $160. on december 31, 2020, sunland had 400 pump motors in inventory. damage during the installation process results in a standard quantity of 1.20 motors per span because of recent delivery problems, sunland wants to maintain an ending inventory equal to 50 percent of the following quarter's production needs. since the supplier has assured sunland that the delivery issues will be resolved by the end of december sunland wants only 300 motors in inventory on december 31, 2021

Question

05-11-2022
Business

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2-person spa requires a pump motor, which sunland purchases for $160. on december 31, 2020, sunland had 400 pump motors in inventory. damage during the installation process results in a standard quantity of 1.20 motors per span because of recent delivery problems, sunland wants to maintain an ending inventory equal to 50 percent of the following quarter's production needs. since the supplier has assured sunland that the delivery issues will be resolved by the end of december sunland wants only 300 motors in inventory on december 31, 2021

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