In Preparing a Budget for the First Three Months of the Year

question 5

Essay

In preparing a budget for the first three months of the year starting in October, Dubya Company is planning the number of units of merchandise to order each month.The company's policy is to have 40% of the next month's sales on hand at the end of the current month.Projected sales for October, November, and December are 40,000 units, 50,000 units, and 100,000 units, respectively.
Required: How many units must be ordered in November?

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