Maki plans to sell 10,000 units of a particular product during July, and expects sales to increase at the rate of 10% per month during the remainder of the year. The June 30 and September 30 ending inventories are anticipated to be 1,100 units and 950 units, respectively. On the basis of this information, how many units should Maki purchase for the quarter ended September 30? 32,150, 32,950, 32,250, 32,850, Non of the above answer is correct

Question

Business

Kyra Mcgrath

28 February, 06:57

Maki plans to sell 10,000 units of a particular product during July, and expects sales to increase at the rate of 10% per month during the remainder of the year. The June 30 and September 30 ending inventories are anticipated to be 1,100 units and 950 units, respectively. On the basis of this information, how many units should Maki purchase for the quarter ended September 30? 32,150, 32,950, 32,250, 32,850, Non of the above answer is correct

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Answers (1)

Know the Answer?

Iliana · Answer 1

Option (B) is correct.

Explanation:

Sales in July = 10,000 units

Sales in August = 10,000 + 10% of 10,000

= 10,000 + 1,000

= 11,000 units

Sales in September = 11,000 + 10% of 11,000

= 11,000 + 1,100

= 12,100 units

Total units will be sold:

= July sales + August sales + September sales

= 10,000 + 11,000 + 12,100

= 33,100 units

Purchase for the quarter ended September 30:

= Total units will be sold - Ending inventory of June + Ending inventory of September

= 33,100 - 1,100 + 950

= 32,950 units