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Leonard Company Is Preparing Its Second Quarter Production Budget

Question 6

Multiple Choice

Leonard Company is preparing its second quarter production budget. Projected sales in units are 600 for April, 680 for May, and 750 for June. Leonard's policy is to have finished goods inventory equal to 20 per cent of the next month's projected unit sales. What should be the production quota for May?


A) 830 units.
B) 694 units.
C) 680 units.
D) 666 units.

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