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MCorporation produces and sells Product D. To guard against stockouts, the company requires that 25% of the next month's sales be on hand at the

MCorporation produces and sells Product D. To guard against stockouts, the company requires that 25% of the next month's sales be on hand at the end of each month. Budgeted sales of Product D over the next four months are:

JuneJulyAugustSeptemberBudgeted sales in units40,00060,00050,00080,000

Budgeted production for August would be:

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  • 57,500 units
  • 107,000 units
  • 77,000 units
  • 80,000 units

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