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How many units should Rizzo budget to purchase in year

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Reference no: EM132849567

Question - Rizzo corporation is a distributor of auto parts. Rizzo Corporation had 17,000 units of brake calipers on hand at the end of its calendar year 5.

The company had a policy of maintaining 15 percent of the current year's sales as ending inventory. During year 6, Rizzo expects to sell 210,000 units of calipers.

How many units should Rizzo budget to purchase in year 6?

A. 196,150 Units

B. 210,000 Units

C. 224,500 Units

D. 194,700 Units

E. 241,500 Units

Reference no: EM132849567

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