Our company makes and sells a single product. We are currently working on our 2021 budgets....

Transcribed Image Text:

Our company makes and sells a single product. We are currently working on our 2021 budgets. We started by estimating unit sales (data for January - April is below; March unit sales intentionally omitted): Estimated unit sales January 74,000 February 93,000 March ? April 102,000 We decided to continue maintaining our current inventory buffer policy: to require 30% of the month's unit sales in that month's beginning inventory. With this buffer policy, we estimated production numbers (data for January April is below): January February March April Estimated production (units) 79,700 89,340 87,160 93,750 What are our estimated unit sales in March? Our company makes and sells a single product. We are currently working on our 2021 budgets. We started by estimating unit sales (data for January - April is below; March unit sales intentionally omitted): Estimated unit sales January 74,000 February 93,000 March ? April 102,000 We decided to continue maintaining our current inventory buffer policy: to require 30% of the month's unit sales in that month's beginning inventory. With this buffer policy, we estimated production numbers (data for January April is below): January February March April Estimated production (units) 79,700 89,340 87,160 93,750 What are our estimated unit sales in March?

Answer rating: 100% (QA)

To find the estimated unit sales in March we can use the inventory buffer p... View the full answer