Problem: Uecker Enterprise expects sales of 20,000 units of DPI1000 in September. DPI1000 is its most popular high performance desktop model. The sales manager is confident that, between October and December, the total sales will have a 50% growth rate each month from the month before. Each unit requires 40 sets of Alpha-5 chip. The firm maintains 1% of the following month's sales needs in inventory. The same policy applies also to the chips and components required to assemble the finished product.
Required:
1) What are the budgeted productions (in units) for each of the months between September and November?
2) How many sets of Alpha-5 does the company plan to purchase in September and October?