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Question: 1. Why is the sales budget so important to the budgeting process?
2. What is a selling expense budget? What is a capital expenditures budget?
3 .Kyoto, Inc. predicts the following sales in units for the coming three months:
May June July
Sales in units . . . . . . . . 280 300 240
Each month's ending inventory of finished units should be 60% of the next month's sales. The April 30 finished goods inventory is 168 units. Compute Kyoto's budgeted production (in units) for May.
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