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What is the budgeted production for each of the months

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Question - Becker Enterprise expects sales of 20,000 units of T1 in September. T1 is its most popular high-performance desktop model. The sales manager is confident that, between October and December, the total sales will experience a 50% growth rate each month from the month before. Each unit requires 40 sets of the Alpha-5 chip. The firm has a policy to maintain inventory at the end of each month equal to 1% of the following month's estimated sales. The same policy applies to the chips and components required to assemble the finished product.

Required -

1. What is the budgeted production (in units) for each of the months September, October, and November?

2. How many sets of Alpha-5 does the company plan to purchase in September and in October?

Reference no: EM132992190

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