Sales for January are budgeted at 50,000 units,and the company expects sales to increase 4% each month.How many units will need to be purchased in February if the company's policy is to keep ending inventory each month at 10,000 units?

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February sales are expected to be 52,000 units (50,000 * 1.04). To maintain an ending inventory of 10,000 units, the company needs to purchase 52,000 units, assuming no beginning inventory or that beginning inventory is already at the desired level.

Sales for January Are Budgeted at 50,000 Units,and the Company