Robyn Company produces and sells automobile batteries. The sales forecast for 2019 is as follows:
Quarter Batteries (in units)
1 5,000
2 7,000
3 8,000
4 10,000
The January 1, 2019 inventory of batteries is forecasted to be 2,000 units. Management desires an ending inventory each quarter equal to 40% of the next quarter's sales.
Required:
a) What are the budgeted units to produce for the second quarter of 2019?
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