Question
Fabricon Company sells a product called Streamer. Management predicts that the June 30 inventory will consist of 12,000 Streamers. In addition, management predicts that sales
Fabricon Company sells a product called Streamer. Management predicts that the June 30 inventory will consist of 12,000 Streamers. In addition, management predicts that sales for the next three quarters will reach these levels: Third quarter 26,500 units Fourth quarter 57,000 units First quarter (next year) 24,600 units Management's policy states that the company should end each quarter with a merchandise inventory equal to 40% of the next quarter's budgeted sales. How many units should Fabricon purchase in the third and fourth quarters to meet this policy?
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