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The following forecasted sales pertain to Rapid City: Month Sales June $160,000 July 200,000 August 120,000 September 80,000 Finished goods inventory as of May 31
The following forecasted sales pertain to Rapid City:
Month | Sales |
June | $160,000 |
July | 200,000 |
August | 120,000 |
September | 80,000 |
Finished goods inventory as of May 31 | 6,000 units |
Rapid City has a selling price of $5 per unit and expects to maintain ending inventories equal to 25 percent of next month's sales. How many units are expected to be produced in June?
a.50,000 units
b.36,000 units
c.42,000 units
d.82,000 units
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