Question
Clorinox produces and sells detergent. Information about the upcoming year's budget is as follows: The company expects to sell 50,000 bottles of detergent in the
Clorinox produces and sells detergent. Information about the upcoming year's budget is as follows: The company expects to sell 50,000 bottles of detergent in the first quarter, 70,000 in the second quarter, 95,000 in the third quarter, and 46,000 in the fourth quarter. The desired ending inventory of finished goods is equal to 15% of next quarters sales. There are 7,500 bottles of detergent on hand at the beginning of the first quarter.
How many units will be in ending inventory at the end of the first?
How many units will be produced in the first quarter?
How much is the desired ending inventory for the first quarter?
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