Q1) Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for next four months as follows:
|
Sales in units |
| April |
50,000 |
| May |
75,000 |
| June |
90,000 |
| July |
80,000 |
Company is now in process of creating production budget for second quarter. Past experience has illustrated that end-of-month inventory levels should equal 10% of following month's sales. Inventory at the end of March was 5,000 units.
Question:
Create production budget for second quarter; in your budget, illlustrate number of units to be produced each month and for quarter in total.