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My name is Ann [436]
3 years ago
10

MC Qu. 93 Schrank Company is trying to decide how... Schrank Company is trying to decide how many units of merchandise to order

each month. The company's policy is to have 25% of the next month's sales in inventory at the end of each month. Projected sales for August, September, and October are 37,000 units, 27,000 units, and 47,000 units, respectively. How many units must be purchased in September
Business
1 answer:
viva [34]3 years ago
5 0

Answer:

Units to be purchased in September = 32,000  units

Explanation:

The units to be be purchased = Sales for the current month + closing inventory - opening inventory

<em>Closing inventory for September = 25% × October sales</em>

                                                = 25% × 47,000 = 11,750

Opening inventory in September =  closing inventory of August

<em>Closing inventory of August =25% × September sales </em>

                                              = 25% × 27,000 = 6750

<em>Units to be purchased i September</em> =

27,000 +11,750 - 6,750 = 32,000  units

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