Question about production units

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Reference no: EM1343557

Question about Production units

Company A information:
Forecasted sales for 1st quarter $200,000
Forecasted sales for 2nd quarter 250,000
Cash sales = 10% of total sales

Collection schedule:
In quarter sold 75%
In next quarter 25%
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Company A forecasts sales for the third quarter at 10,000 units. The desired ending inventory for the second quarter is 2,000 units and for the third quarter is 3,000 units. How many units must be produced in the third quarter?

Reference no: EM1343557

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