Trago Company manufactures a single product and has a JIT policy that ending inventory must equal 5% of the next month's sales. It estimates that May's ending inventory will consist of 14,000 units. June and July sales are estimated to be 280,000 and 290,000 units, respectively. Compute the number of units to be produced in June.
A. 280,000.
B. 266,000.
C. 294,500.
D. 290,000.
E. 280,500.
Answer: E
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