Question

Schrank Company is trying to decide how many units of merchandise to order each month. The company's policy is to have 30% of the next month's sales in inventory at the end of each month. Projected sales for August, September, and October are 49,000 units, 39,000 units, and 59,000 units, respectively. How many units must be purchased in September?

Answer 1

Explanation:

Answer 2

27,300 units

Explanation:

1. In order to calculate 30% of September's 39,000 sales, use 39,000x0.3, which equals 11,700 units in inventory at the end of August.

2. To find out how many units Schrank must purchase do 39,000-11,700, which 27,300 units that Schrank must purchase in September.