Mr Lewis's Co has projected sales for the next four months as follows: $$\begin{array} { l c }
& \underline { \text { Units } } \
\text { January } & 70,000 \
\text { February } & 90,000 \
\text { March } & 55,000 \
\text { April } & 65,000
\end{array}$$ Beginning inventory for the year is 47,000 units. Ending inventory for each month should be 30% of the next month's sales. How many units need to be available for sale in February?
A) 117,000
B) 90,000
C) 47,000
D) 106,500

Question

Mr Lewis's Co has projected sales for the next four months as follows: $$\begin{array} { l c } 
& \underline { \text { Units } } \
\text { January } & 70,000 \
\text { February } & 90,000 \
\text { March } & 55,000 \
\text { April } & 65,000
\end{array}$$ Beginning inventory for the year is 47,000 units. Ending inventory for each month should be 30% of the next month's sales. How many units need to be available for sale in February?
A) 117,000
B) 90,000
C) 47,000
D) 106,500

Quizplus · Accepted Answer

To calculate the units needed for February, add February's sales (90,000) to 30% of March's sales (0.3 * 55,000 = 16,500). Thus, 90,000 + 16,500 = 106,500 units.

Mr Lewis's Co Has Projected Sales for the Next Four