Question

Bengal Co. provides the following sales forecast for the next three months:

July August September
Sales units 5,000 5,700 5,560

The company wants to end each month with ending finished goods inventory equal to 25% of the next month's sales. Finished goods inventory on June 30 is 1,250 units. The budgeted production units for August are:
A.6,950 units.
B.4,310 units.
C.7,090 units.
D.5,665 units.
E.4,135 units.

Answer

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