Paradise Corporation budgets on an annual basis for its fiscal year. The following beginning and...
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Accounting
Paradise Corporation budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for next year.
Beginning Inventory
Ending Inventory
Raw material*
53,600
58,800
Finished goods
85,000
51,000
* Three pounds of raw material are needed to produce each unit of finished product. If Paradise Corporation plans to sell 510,000 units during next year, the number of units it would have to manufacture during the year would be:
a. 466,000 units
b. 506,000 units
c. 536,000 units
d. 476,000 units
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