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How many units does the company need to produce

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Reference no: EM132106028

Question - The Cecelia Company has prepared its sales budget for the first two quarters of 2016. Expected sales in units are 330,000 units for the first quarter and 285,000 units for the second quarter. The company likes to maintain an inventory at the end of each quarter equal to one-third of the next quarter's expected sales. The company had 120,000 units in inventory on December 31, 2015. How many units does the company need to produce during the first quarter of 2016?

A. 315,000 units

B. 320,000 units

C. 305,000 units

D. 275,000 units

Reference no: EM132106028

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