Greco Company Has Prepared the Following Forecasts of Monthly Sales

question 108

Essay

Greco Company has prepared the following forecasts of monthly sales:
$$\begin{array} { l | l | l | l | l | l } & \text { July } & \text { August } & \text { September } & \text { October } \\\hline \text { Sales (in Units) } \ldots \ldots \ldots \ldots & 4,500 & 5,300 & 4,000 & 3,700\end{array}$$ Greco has decided that the number of units in its inventory at the end of each month should equal 25% of the next month's sales. The budgeted cost per unit is $30.
(1) How many units should be in July's beginning inventory?
(2) What amount should be budgeted for the cost of merchandise purchases in July?

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Definitions:

U.S. Steel Case

A landmark antitrust case involving the United States Steel Corporation that impacted legal standards for monopoly practices.

Alcoa Case

A landmark antitrust case involving the Aluminum Company of America (Alcoa), which set standards on monopolies and competition law.

Industry Structure

The characteristics and organization of an industry, including the number of firms, level of competition, and market dominance.

Antitrust Laws

Legislation designed to promote fair competition for the benefit of consumers, preventing monopolies and promoting a competitive market environment.