Universal Products has experienced a number of out-of-stock situations with respect to its finished-goods inventories. Inventory at the end of June, for example, was only 400 units%u2014 an all-time low.
Management desires to implement a policy whereby finished-goods inventory is 60% of the following month's sales. Budgeted sales for July, August, and September are expected to be 3,600 units, 3,800 units, and 4,500 units, respectively.
Required: Determine the number of units that Universal Products must produce in July and August.