Bison Sporting Goods sells bicycles throughout the northeastern United States. The following data were taken from the most recent quarterly sales forecast: $\begin{array}{lll}&& \text { End-of-Month } \
&\text { Expected Sales } & \text { Target Inventory }\
\text { July } & 1,800 \text { units } & 210 \text { units } \
\text { August } & 1,950 \text { units } & 300 \text { units } \
\text { September } & 1,880 \text { units } & 270 \text { units }
\end{array}$ On the basis of the information presented, how many bicycles should the company purchase in August?

Question

Quizplus · Accepted Answer

To calculate the number of bicycles to purchase in August, add the expected sales for August (1,950 units) to the target inventory for August (300 units), then subtract the target inventory for July (210 units): 1,950 + 300 - 210 = 2,040 units.

Bison Sporting Goods Sells Bicycles Throughout the Northeastern United States