SolutionCo has prepared budgets based on the following assumptions:
Sales volumethree months to 30 September 2011:85,720 units three months to 31 December 2011:94,560 units
Inventory volumeat 1 July 2011:10% of sales for the next three months at 1 October 2011:75% of sales for the next three months
What is the budgeted production volume for the three months to 30 September 2011?
A . 86,383 units
B . 87,200 units
C . 84,240 units
D . 86,604 units
Answer: C
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