Homework Answers
Total sales forecast of five months = 825+600+650+550+475 = 3100 units
Net sales forecast = Total sales forecast - beginning inventory = 3100-225 = 2875
Level production quantity = 2875/5 = 575 units per month
ANSWER: C) 575 units per month
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May
June
July
Sales (units)
550
630
580
670
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inventory equal to 20% of next month's forecasted sales. Finished
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