At March 31 Streuling Enterprises, a merchandising firm, had an inventory of 38,000 units. Sales, in units, have been budgeted as follows for the next four months:
April...................... 60,000
May....................... 75,000
June....................... 90,000
July........................ 81,000
Streuling's board of directors has established a policy to commence in April that the inventory at the end of each month should contain 40% of the units required for the following month's budgeted sales.
Required:
A merchandise purchases budget showing how many units should be purchased for each of the months April, May, and June.