A bakery plans to sell 200,000 units of baked goods to grocery stores nationally in July. It anticipates a growth rate in sales of 5 percent per month due to the time of year and new contracts with various grocery stores management feels that this steady 5 percent growth can be sustained. The desired monthly ending inventory in units of finished baked goods is 80 percent of the next month's estimated sales.
There are 160,000 finished bake goods in inventory in June 30. Each unit of finished product needs 4 pounds of raw material (flour, sugar, and butter) at cost of $1.15 per pound. There are 700,000 pounds of raw material in inventory of June 30. Evaluate the bakery's total required production in units of baked goods for the entire three months period ending 9/30.