Let's break down the information from the image and solve the problem:

Given dataLet's break down the information from the image and solve the problem:

Given

• Sales volumes per month:
  • January: 1,200 units
  • February: 1,500 units
  • March: 1,300 units
• Opening finished goods inventory: 300 units
• Expected closing finished goods inventory: 500 units
• Each product requires 4 machine hours.
• Monthly available machine hours: 5,200 hours
• The company will use a regular production process.

Approach:

We need to determine if the machine hours are sufficient for production. We will:

1. Calculate the production requirements for each month, accounting for inventory.
2. Determine the total machine hours needed for each month.
3. Compare this with the available machine hours (5,200 per month) to see if there's a shortfall.

Step 1: Determine the required production volumes

The production volume for each month can be calculated using the formula: $\text{Production} = (\text{Sales volume} + \text{Closing inventory}) - \text{Opening inventory}$ However, since the opening and closing inventory apply to the whole quarter, we will adjust for each month.

Step 2: Calculate machine hours for production