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[The following information applies to the questions displayed below.] A company makes one product and has provided the following information to help prepare the master
[The following information applies to the questions displayed below.]
A company makes one product and has provided the following information to help prepare the master budget.
- The budgeted selling price per unit is $70. Budgeted unit sales for January, February, March and April are 8,500, 16,000, 18,000, and 19,000 units, respectively. All sales are on credit.
- Forty percent of credit sales are collected in the month of the sale and 60% in the following month.
- The ending finished goods inventory equals 20% of the following months unit sales.
4. According to the production budget, calculate the number of units that should be produced in February.
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