(Solution) - Down Under Products Ltd of Australia has budgeted sales -(2025 Original AI-Free Solution)

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Academic Level: Undergrad. (yrs 3-4)

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Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows:

The company is now in the process of preparing a production budget for the second quarter. Past experience has shown that end-of-month inventory levels must equal 10% of the following month?s sales. The inventory at the end of March was 5,000 units.
Required:
Prepare a production budget for the second quarter; in your budget, show the number of units to be produce each month and for the quarter intotal.