Down Under Products, Ltd., of Australia has budgeted sales ofits popular boomerang for the next four months as follows:Sales in Units April70,000 May85,000 June110,000 July90,000The company is now in the process of preparing a productionbudget for the second quarter. Past experience has shown thatend-of-month inventory levels must equal 15% of the followingmonth’s sales. The inventory at the end of March was 10,500units.Required:Prepare a production budget for the second quarter; in yourbudget, show the number of units to be produced each month and forthe quarter in total.
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