Question

Bison Sporting Goods sells bicycles throughout the northeastern United States. The following data were taken from the most recent quarterly sales forecast:
Expected Sales End-of-Month Target Inventory
  July 1,930 units       340 units      
  August 2,080 units       430 units      
  September 2,010 units       400 units  


On the basis of the information presented, how many bicycles should the company purchase in August?

a. 1,980.
b. 2,080.
c. 2,170.
d. 2,510.
e.Some other amount.

Answer 1

Answer:

C) 2,170

Explanation:

Purchase in August  = Expected Sales in August + Target Inventory at end of August - Inventory at the end of July

= 2,080 units + 430 units – 340 units = 2,170 units