Answer:
Units will need to be purchased in February are a. 52,000 units
Explanation:
Sales for January are budgeted at 50,000 units, and the company expects sales to increase 4% each month.
Sales of February are budgeted = 50,000 + 50,000 x 4% = 52,000 units
Units will need to be purchased in February = Ending inventory in February + Units Sold of February - Beginning inventory in February.
The company's policy is to keep ending inventory each month at 10,000 units.
Therefore,
Ending inventory in February = Beginning inventory in February = Ending inventory in January = 10,000 units
Units will need to be purchased in February = 10,000 + 52,000 - 10,000 = 52,000 units
