Question - Braindead Pty Ltd expects sales of 40,000 units of Faytik101 in March. Faytik101 is its most popular high performance desktop model. The sales manager is confident that between April and June, the total sales will have a 50% growth rate each month from the month before. Each unit of Faytik101 requires 50 units of a specific chip known as Slacker-2. This chip is purchased from an external supplier.
The firm maintains 10% of the following month's sales needs in inventory. This policy also applies to the chips and components required to assemble the finished product.
Required:
a. What are the budgeted production (in units) for each of the months between March and May?
b. How many sets of Slacker-2 does the company plan to purchase in March and April?