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Question - CQL Company plans to sell 400,000 units of finished product in July an anticipates a growth rate in sales of 5% per month. The desired monthly ending inventory in units of finished product is 80% of the next month's estimated sales.
There are 300,000 finished units in the inventory on June 30. Each unit of finished product requires four pounds of direct materials at a cost of P2.50 per pound. There are 800,000 pounds of direct materials in the inventory on June 30.
How many units should be produced for the three- month period ending September 30?
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