Sam Sham The Discount Man is a retailer of fake Rolex watches. He buys them for for $2 and sells them for $20, He is doing his operating budget for the upcoming year.He started the period with 65 watches in his inventory. He estimates that he will sell 150 during the upcoming period. He also expects to have safety stock at the end of the period of 50 watches.

Questions!

1) Sam wants to complete his budget for watch purchases. How many will Sam Sham plan to purchase?

2) Why would a company like Sam Sham decide to hold extra safety stock at the end of the period in the first place? Explain one reason below.

3) Are there any reasons that Sam might NOT want to hold extra inventory? Explain one below:

Please answer these questions!! Will give like!