Crystal Telecom has budgeted the sales of its innovative mobile phone over the next four months as follows:
|
Sales in Units |
| July |
|
17,000 |
|
| August |
|
41,000 |
|
| September |
|
62,000 |
|
| October |
|
48,000 |
|
|
The company is now in the process of preparing a production budget for the third quarter. Past experience has shown that end-of-month finished goods inventories must equal 15% of the next month's sales.