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Supply Corporation manufactures and sells cotton gauze for $2 a box. Expected sales of gauze (in boxes) for upcoming months are as follows: # of
Supply Corporation manufactures and sells cotton gauze for $2 a box. Expected sales of gauze (in boxes) for upcoming months are as follows:
| # of boxes |
August.................... | 60,000 |
September.............. | 75,000 |
October.................. | 100,000 |
Management likes to maintain a finished goods inventory equal to 25% of the next month's estimated sales.What is the company's budgeted production in boxes for September?
A. | 75,000 boxes | |
B. | 63,750 boxes | |
C. | 81,250 boxes | |
D. | 71,250 boxes |
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