Question
Keggler's Supply is a merchandiser of three different products. The company's February 28 inventories are footwear, 21,500 units; sports equipment, 78,000 units; and apparel, 48,500
Keggler's Supply is a merchandiser of three different products. The company's February 28 inventories are footwear, 21,500 units; sports equipment, 78,000 units; and apparel, 48,500 units. Management believes each of these inventories is too high. As a result, a new policy dictates that ending inventory in any month should equal 30% of the expected unit sales for the following month. Expected sales in units for March, April, May, and June follow.
Budgeted Sales in UnitsMarchAprilMayJuneFootwear16,00024,00031,50036,000Sports equipment71,50089,00096,00090,000Apparel41,00038,50033,50023,000
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