Maintaining an ending finished-goods inventory

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Smith, Inc. anticipates sales of 50,000 units, 48,000 units and 51,000 units in July, August and Septemeber, respectively. Company policy is to maintain an ending finished-goods inventory to 40% of the following months sales. On the basis of this information, how many units would the company plan to produce in August?

a. 46,800

b. 49,200

c. 49,800

d. 52,200

e. Some other amount

Reference no: EM13126676

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