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Question - Down Under Products, Limited, of Australia has budgeted sales of its popular boomerang for the next four months as follows:
Unit sales
April 74,000
May 85,000
June 114,000
July 92,000
The company is now In the process of preparing a production budget for the second quarter. Past experience has shown that end-of-month Inventory levels must equal 10% of the following month's unit sales. The Inventory at the end of March was 7,400 units. Prepare a production budget by month and in total, for the second quarter.
The new management of YC Inc. has increased the amount of their year-end liability-expense accruals by over 35% compared to recent years, primarily in recording estimated future warranty expenses. The most likely reason for this action is to:
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