Assuming the company decide how many units of merchandise to order each month. The number of units that mus be purchased in september is 24,000 units.
<h3>Number of units</h3>
Using this fomula
Number of units=September sales units-Beginning inventory +Desired ending inventory
Hence:
September sales units 20,000
Beginning inventory (4,000)
(20,000 x 0.20)
Desired ending inventory 8,000
(40,000×0.20)
Number of units 24,000
(20,000-4,000+8,000)
Inconclusion the number of units that mus be purchased in september is 24,000 units.
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