To determine the number of units to be produced in 2020, we use the following equation:

$\text{Units to be produced} = (\text{Projected Sales}) + (\text{Target Ending Inventory}) - (\text{Beginning Inventory})$

Given:

• Beginning Inventory = 250,000 units
• Projected Sales = 5,750,000 units
• Target Ending Inventory = 400,000 units

Now, applying the formula:

$\text{Units to be produced} = 5,750,000 + 400,000 - 250,000$

$\text{Units to be produced} = 5,900,000 \, \text{units}$

Thus, 5,900,000 units need to be produced in 2020.

Would you like further clarification or details? Here are some related questions you might explore:

1. How would changing the target ending inventory affect production?
2. What if projected sales were to increase or decrease by 10%?
3. How does the beginning inventory influence the number of units to be produced?
4. How would inventory costs impact this production decision?
5. What strategies could a company use to minimize excess inventory?

Tip: Monitoring inventory levels closely throughout the year can help optimize production and avoid unnecessary costs.