25. Atlanta Sporting Goods sells bicycles throughout the southeastern United States. The following data were taken from the most recent quarterly sales forecast:

		End-of-Month
	Expected Sales	Target Inventory
April	1,700 units	200 units
May	1,850 units	270 units
June	2,000 units	310 units

On the basis of the information presented, how many bicycles should the company purchase in May?

A. 1,780.

B. 1,920.

C. 2,050.

D. 2,120.

E. Some other amount.

Answer: B

26. Swanson plans to sell 10,000 units of a particular product during July, and expects sales to increase at the rate of 10% per month during the remainder of the year. The June 30 and September 30 ending inventories are anticipated to be 1,100 units and 950 units, respectively. On the basis of this information, how many units should Swanson purchase for the quarter ended September 30?

A. 31,850.

B. 32,150.

C. 32,950.

D. 33,250.

E. Some other amount.

Answer: C

27. York Corporation plans to sell 41,000 units of its single product in March. The company has 2,800 units in its March 1 finished-goods inventory and anticipates having 2,400 completed units in inventory on March 31. On the basis of this information, how many units does York plan to produce during March?

A. 40,600.

B. 41,400.

C. 43,800.

D. 46,200.

E. Some other amount.

Answer: A

28. Coleman, Inc., anticipates sales of 50,000 units, 48,000 units, and 51,000 units in July, August, and September, respectively. Company policy is to maintain an ending finished-goods inventory equal to 40% of the following month's sales. On the basis of this information, how many units would the company plan to produce in August?

A. 46,800.

B. 49,200.

C. 49,800.

D. 52,200.

E. Some other amount.

Answer: B

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