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. Down Under Products, Limited of Australia has budgeted sales of its popular boomerang for the next four months as follows: Unit Sales April 62,000
. Down Under Products, Limited of Australia has budgeted sales of its popular boomerang for the next four months as follows:
| Unit Sales |
April | 62,000 |
May | 80,000 |
June | 102,000 |
July | 86,000 |
Selling price is $20 per unit. Past experience has shown that end-of-month inventory levels must equal 10% of the following months unit sales. The inventory at the end of March was 6,200 units.
1.Calculate the required production in units of finished goods for each month in the second quarter and for the quarter as a whole.
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