Problem:
Not sure which method to use to work out the following problem:
Nano, Inc. is preparing its budget for the second quarter. The following sales data have been forecasted:
April May June July August
Unit Sales ............ 640 720 780 620 680
Additional Information:
- Inventory on March 31: 192 units
- Desired ending inventory each month: 30% of next month's sales
How many units should be purchased in April, May, and June? How many units should be purchased in the second quarter in total?