Solved: How many pipes should they produce, Accounting Basics

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How many pipes should they produce

Problem:

Proco manufactures pipes. The estimated number of pipes for the first three months is:

Month Unit Sales
Jan 1,000
Feb 1,400
March 1,200

FGI at the end of last December was 100 units. Ending FGI is equal to 20% of the next month's sales. The company expects to sell the pipes for $10 each.

How many pipes should they produce in January?

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