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The Cardinal Company had a finished goods inventory of 55,000 units on January 1. Its projected sales for the next four months were: January - 200,000 units; February - 180,000 units; March - 210,000 units; and April - 230,000 units. The Cardinal Company wishes to maintain a desired ending finished goods inventory of 20% of the following month's sales.
?Problem 1: Determine the budgeted units of inventory for March 31.
Option 1: 46,000
Option 2: 36,000
Option 3: cannot be determined from the data given
Option 4: 42,000
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