Although only 20 units are on hand at the beginning of the year,World Company plans to sell 100 units during Year 2.Assuming the company desires an ending inventory of 10 units,it should plan to purchase 110 units.

Question

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The company should plan to purchase 90 units. Calculation: 100 units (planned sales) + 10 units (desired ending inventory) - 20 units (beginning inventory) = 90 units needed to be purchased.

Although Only 20 Units Are on Hand at the Beginning