Maki plans to sell 10,000 units of a particular product during July, and expects sales to increase at the rate of 10% per month during the remainder of the year. The June 30 and September 30 ending inventories are anticipated to be 1,100 units and 950 units, respectively. On the basis of this information, how many units should Maki purchase for the quarter ended September 30?

Question

Quizplus · Accepted Answer

Maki's sales for July are 10,000 units, August sales are 11,000 units (10,000 * 1.10), and September sales are 12,100 units (11,000 * 1.10). Total sales for the quarter are 33,100 units. The inventory at the end of June is 1,100 units, and the inventory at the end of September is 950 units. To find the number of units to purchase, calculate: (33,100 + 950) - 1,100 = 32,950 units.

Maki Plans to Sell 10,000 Units of a Particular Product