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The local San Diego Company SoCal ShakaSurfer Corporation's budgets their sales quarterly. The quarterly sales for the next year (2021) as expressed in units (which
The local San Diego Company SoCal ShakaSurfer Corporation's budgets their sales quarterly. The quarterly sales for the next year (2021) as expressed in units (which are surfboards) are as follows:
Quarter 1 | 11,200 units |
Quarter 2 | 9,850 units |
Quarter 3 | 16,800 units |
Quarter 4 | 16,100 units |
SoCal wants to keep inventory on hand (finished goods inventory) at the end of each quarter equal to 20% of the next quarter's sales. So based on all this information, SoCal ShakaSurfer should budget production to meet this demand for the 2nd quarter of the year to be:
11,240 units
9,850 units
8,460 units
10,840 units
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