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Question(s) / Instruction(s):

A corporation manufactures and sells a product with the following expected sales:

Budgeted Unit Sales

October               28,000

November          25,000

December           31,000

Company policy requires a finished goods inventory equal to 30% of the next months estimated unit sales. How many units should the company plan on producing during the month of November?

 a)           23,200

 b)           26,800

 c)           25,900

 d)           34,300

 

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