Total required production in units of finished product

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Reference no: EM13153440

San Fernando Fertilizer company plans to sell 40,000 units of finished product in July and 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 32,000 finished units in inventory on June 30. Each units of finished product requires four pounds of raw material at a cost of $1.40 per pound. There are 140,000 pounds of raw material in inventory on June 30.

Compute the company's total required production in units of finished product for the entire three month period ending September 30.

Reference no: EM13153440

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