Houseman, Inc. anticipates sales of 50,000 units, 48,000 units, and 51,000 units in July, August, and September, respectively. Company policy is to maintain an ending finished-goods inventory equal to 40% of the following month's sales. On the basis of this information, how many units would the company plan to produce in July?
A. 49,200.
B. 49,800.
C. 52,200.
D. 46,800.
E. None of the answers is correct.
Answer: A
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