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Computing required production in units

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Flamingo Inc. estimates its sales at 150,000 units in the first quarter and that sales will increase by 25,000 units each quarter over the year (e.g Q1 sales will be 150,000,Q2 will be 175,000 and so forth). The company believes that it can meet future needs with an ending inventory of 15% of next quarter's budgeted sales volume. Each unit sells for $55. 60% of the sales are for cash. 55% of the credit customers pay within the quarter. The remainder is received in the quarter following sale. What will be the required production in units for 3rd Quarter. 178,750. 153,750. 203,750. 248,000.

Reference no: EM133216398

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