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Masde Corporation produces and sells Product CharlieD. To guard against stockouts, the company requires that 25% of the next month's sales be on hand at the end of each month. Budgeted sales of Product CharlieD over the next four months are:
June July August September
Budgeted sales in units 40,000 60,000 50,000 80,000
Problem 1: Budgeted production for August would be:
Option 1: 57,500 units
Option 2: 107,000 units
Option 3: 80,000 units
Option 4: 77,000 units
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