A Sales Budget Is Given Below for One of the Products

question 73

Essay

A sales budget is given below for one of the products manufactured by Dance, Ltd.
$$\begin{array} { | l | r | } \hline \text { Month } & \text { Sales Budget in Units } \\\hline \text { July } & 18,000 \\\hline \text { August } & 20,000 \\\hline \text { September } & 24,000 \\\hline \text { October } & 26,000 \\\hline \text { November } & 19,000 \\\hline \text { December } & 16,000 \\\hline\end{array}$$
The inventory of finished goods at the end of each month must be equal to 5,000 units plus 10% of the next month's sales. On June 30, the finished goods inventory totaled 6,800 units.
Each unit of product requires three ounces of a special liquid extract known as SV-6. Sometimes the extract is in short supply; for this reason, the company has a policy of maintaining an inventory at the end of each month equal to one half of the next month's production needs. This requirement was met on July 1 of the current year.
Required:
Prepare a budget showing the quantity of SV-6 to be purchased for September.

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Definitions:

Mandamus

A judicial writ issued as a command to an inferior court or ordering a person to perform a public or statutory duty.

Decision Maker

An individual or group responsible for making judgments and choices in a given situation.

Negotiation

The process by which two or more parties aim to reach a mutually acceptable agreement.

Negotiator

A person skilled in discussion with the aim of reaching an agreement or compromise on behalf of a party in a dispute or negotiation.