Templeton Enterprises Expects the Following Unit Sales Over the Next

question 64

Essay

Templeton Enterprises expects the following unit sales over the next few months: $$\begin{array} { | l | r | } \hline \text { Month } & \text { Unit Sales } \\\hline \text { June } & 100,000 \\\hline \text { July } & 120,000 \\\hline \text { August } & 135,000 \\\hline \text { September } & 150,000 \\\hline \text { October } & 140,000 \\\hline \text { November } & 125,000 \\\hline\end{array}$$
Templeton's goal is to maintain an inventory equal to a 6 day supply.March 31^st inventory is projected to be 18,000 units.Required:
Prepare a purchases budget (in units)for Templeton for as many months as is possible.Assume a 30-day month.

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Definitions:

Foreign Indebtedness

The total amount of debt a country owes to foreign creditors.

Fixed Exchange Rates

A currency system where the value of a currency is set at a predetermined rate relative to other currencies, instead of fluctuating in the open market.

Exchange Controls

Restrictions that a government may impose over the quantity of foreign currency demand by its citizens and firms and over the rate of exchange as a way to limit the nation’s quantity of outpayments relative to its quantity of inpayments (in order to eliminate a payments deficit).

Flexible Exchange Rates

Foreign exchange system where the value of currencies is determined by supply and demand in the forex market, without direct government intervention.