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Question - Templeton Corporation produces ice cream machines. Last year, Templeton sold 40,000 machines. Unit sales are expected to increase 10 percent each year. Average sales price per machine will remain at $200.
Assume finished goods inventory is maintained at a level equal to 5 percent of the next quarter's sales. Finished goods inventory at the end of last year was 2,300 units.
Required - What is Templeton Corporation's production budget for this year?
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