Question
Carter Manufacturers have budgeted sales for the coming months as follows: January 160 000 units February 240 000 units March 200 000 units April 400
Carter Manufacturers have budgeted sales for the coming months as follows:
January 160 000 units
February 240 000 units
March 200 000 units
April 400 000 units
May 150 000 units
The firm has decided that to avoid losing customers because of production hold-ups it will in future maintain a finished goods inventory on hand equal to one-fifth of the following month's budgeted sales. At 31 December the company had in finished goods stock 10 000 units. What is budgeted production for the quarter January-March?
530 000 units
830 000 units
670 000 units
970 000 units
680 000 units
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