Krier Industries Has Just Completed Its Sales Forecasts and Its

Krier Industries has just completed its sales forecasts and its marketing department estimates that the company will sell 36,000 units during the upcoming year. In the past, management has maintained inventories of finished goods at approximately three months' sales. However, the estimated inventory at the start of the year of the budget period is only 6,000 units. Sales occur evenly throughout the year. What is the estimated production level (units) for the first month of the upcoming budget year?

A) 12,000.
B) 9,000.
C) 6,000.
D) 3,000.

Correct Answer:

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