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In Q4 can you explain how they calculated the Desired ending inventory of 1,250? The company has a policy that states that 25% of the

In Q4 can you explain how they calculated the Desired ending inventory of 1,250? The company has a policy that states that 25% of the next quarter's needs.

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Q1 Q2 Q3 Q4 Expected unit sales 3.500 4,000 3,200 4,800 Add: Desired ending inventory 1,000 800 1,200 1,250 Total required units 4.500 4.800 4,400 6,050 Less: Beginning inventory 875 1,000 800 1,200 Required production (in units) 3,625 3.800 3,600 4.850 Annual production (in units) Q4 to calculate the required production for those periods

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