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Compute the company total required production

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Question - San Fernando Fertilizer Company plans to sell 250,000 units of finished product in July and anticipates a growth rate in sales of 4 percent per month. The desired monthly ending inventory in units of finished product is 85 percent of the next month's estimated sales. There are 212,500 finished units in inventory on June 30. Each unit of finished product requires 5 pounds of raw material at a cost of $1.45 per pound. There are 810,000 pounds of raw material in inventory on June 30.

Required: Compute the company's total required production in units of finished product for the entire three-month period ending September 30.

Reference no: EM132288889

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