Diamonds Inc. distributes whole cut diamonds throughout southeastern Ontario. The following data were taken from the most recent quarterly sales forecast. $\begin{array}{lll}
& \text { Expected Sales } & \text { End of Month Target } \
&& \text { Inventory } \
\text { July } & 2,000 \mathrm{units} & 200 \text { units } \
\text { August } & 1,000 \mathrm{units} & 310 \text { units } \
\text { September } & 1,500 \mathrm{units} & 260 \mathrm{units}
\end{array}$ Based upon the above, how many diamonds should the company purchase in August?

Question

Quizplus · Accepted Answer

To find out how many diamonds the company should purchase in August, we need to calculate the expected sales for August and subtract it from the end of month target inventory for August.

Expected sales for August = 1,000 units

End of month target inventory for August = 310 units

Therefore, the company needs to purchase (310 - 1,000) = 1,110 diamonds in August to meet the target inventory.

So, the correct answer is C) 1,110.

Diamonds Inc Based Upon the Above, How Many Diamonds Should the Company