1. (6points)The budget committee for Amazing Company, with the help of the district sales manager, projects sales of 80,000 units of its primary product next year. The budget committee and key executives have decided that finished goods inventory should be decreased by 3,000 units.

Furthermore, they believe that Raw Material inventories can be reduced by 80% during the coming year because of the newly installed supply chain system. Each unit of finished product requires three units of material MPS15 and six units of material NAV23.

ALL Amounts are in Units of the Specified Item

Finished Goods Raw Material MPS 15 Raw Material NAV 23

Beginning Inventory 10,000 10,000 20,000

Ending Inventory 7,000 2,000 4,000

Sales

80,000

a) How many Finished Goods Units should they inform Production to produce?

b) How many MPS15 Units should they inform Purchasing to purchase?

c) How many NAV23 Units should they inform Purchasing to purchase?