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Business, 17.04.2020 19:05 angie249

Paradise Corporation budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for next year.

Beginning Inventory Ending Inventory
Raw material* 56,000 66,000
Finished goods 96,000 66,000

*Three pounds of raw material are needed to produce each unit of finished product.
If Paradise Corporation plans to sell 480,000 units during next year, the number of units it would have to manufacture during the year would be:

a. 504,000 units
b. 560,000 units
c. 590,000 units
d. 530,000 units

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