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Hi,Sir.
Hiccup expects the following sales volumes for the first quarter of next year:
January. 5000 units
February. 4000units
March. 8000units
Finished goods inventory on 1 January is expected to be 1000 units.However,the company’s policy for next year will be to maintain finished goods inventory level at 80% of the following month’s sales.
How many units should be budgeted for production in January?
The answer is 7200
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