The XYZ Company has budgeted sales of 975,000 units in 2012. Its target ending inventory is 95,000 units and its beginning inventory is 115,000 units.
Each unit of XYZ's product requires 5 pounds of material to produce. Its target ending inventory for material is 75,000 pounds and its beginning inventory for materials is 65,000 pounds.
a) Compute the number of units to be produced.
b) Compute the budgeted number of pounds of materials to be purchased.