Question

Vitale Hair Spray had sales of 13,000 units in March. A 70 percent increase is expected in April. The company will maintain 30 percent of expected unit sales for April in ending inventory. Beginning inventory for April was 650 units.

Answer 1

The units to be purchased in April by Vitale Hair Spray should be 28,080 units.

These units to be purchased by Vitale Hair Spray are computed as follows:

Sales units in March = 13,000 units

Expected increase in Sales units in April = 70%

Therefore, Sales units in April = 22,100 (13,000 x 1.7)

Ending Inventory for April = 30% of expected April Sales

= 6,630 units (22,100 x 30%)

Purchases = Ending Inventory + Expected April Sales - Beginning Inventory = 28,080 units (6,630 + 22,100 - 650)

Thus, the units to be purchased are the sum of Expected April Sales and Ending Inventory Less Beginning Inventory.

Learn more about calculating the purchases units at brainly.com/question/24097250