Mutskic Corporation produces and sells Product BetaC To guar

Mutskic Corporation produces and sells Product BetaC. To guard against stockouts, the company requires that 30% of the next month\'s sales be on hand at the end of each month. Budgeted sales of Product BetaC over the next four months are: June July August September Budgeted sales in 60,000 70,000 80,000 90,000 units.... What is the budgeted production(units) for August?

Solution

June July August September Budgeted sales in units 60000 70000 80000 90000 Budgeted productions units Current month requirement 60000 70000 80000 90000 Add: Next month\'s 30% sale 21000 24000 27000 Total Production required 81000 94000 107000 The budgeted units for August would be 107000