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Short Company produces two products: X Brand and Y Brand. Budgeted sales for four months are as follows: X Brand Y Brand May 10,000 40,000

Short Company produces two products: X Brand and Y Brand. Budgeted sales for four months are as follows:

X Brand

Y Brand

May

10,000

40,000

June

20,000

70,000

July

15,000

80,000

August

30,000

90,000

Shorts ending inventory policy is that X Brand should have 10% of its next months sales in ending inventory and Y Brand should have 20% of next months sales in its ending inventory. On May 1, Shorties inventory had 1,000 units of X Brand and 9,000 units of Y Brand. Y Brand requires four units of component A. (X Brand does not use component A.) On May 1, 2,100 units of component A were in inventory. Short wants to have 30% of the following months production needs in inventory for component A.

a)How much component A will be budgeted in May? Please show your work.

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