Sharma Industries plans to sell 8,400 deluxe beach umbrellas during June, 6,800 in July, and 9,500 during August. The company keeps 22.75% of the next month's sales as ending inventory. How many units should Sharma produce during July? (rounding to whole units since you can't produce partial umbrellas). a. 5,252 b. 7,414 c. 6,800 d. Not enough information to determine.

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
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Sharma Industries plans to sell 8,400 deluxe beach umbrellas
during June, 6,800 in July, and 9,500 during August. The
company keeps 22.75% of the next month's sales as ending
inventory. How many units should Sharma produce during July?
(rounding to whole units since you can't produce partial
umbrellas).
a. 5,252
b. 7,414
c. 6,800
d. Not enough information to determine.
Transcribed Image Text:Sharma Industries plans to sell 8,400 deluxe beach umbrellas during June, 6,800 in July, and 9,500 during August. The company keeps 22.75% of the next month's sales as ending inventory. How many units should Sharma produce during July? (rounding to whole units since you can't produce partial umbrellas). a. 5,252 b. 7,414 c. 6,800 d. Not enough information to determine.
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