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Archer Company has budgeted sales of 30,000 units in April, 40,000 units in May, and 60,000 units in June. The company has 6,000 units on hand on April 1. If the company requires an ending inventory equal to 20% of the following month’s sales, production during May should be:

a) 32,000 units
b) 44,000 units
c) 36,000 units
d) 40,000 units.

Sagot :

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