Grey Manufacturing Company expects sales to total 13,000 units in the first quarter, 12,000 units inthe second quarter, and 15,000 units in the third quarter of the current fiscal year. Company policyis to have on hand at the end of each quarter an amount of inventory equal to 10% of the followingquarter’s sales. Given this information, how many units should be scheduled for production in thesecond quarter?

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Grey Manufacturing Company expects sales to total 13,000 units in the first quarter, 12,000 units in
the second quarter, and 15,000 units in the third quarter of the current fiscal year. Company policy
is to have on hand at the end of each quarter an amount of inventory equal to 10% of the following
quarter’s sales. Given this information, how many units should be scheduled for production in the
second quarter?

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