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If seasonal production is used, it is assumed that inventory will directly match sales for each month and there will be no inventory buildup. The production manager thinks the preceding assumption is too optimistic and decides to go with level production to avoid being out of merchandise. He will produce the 36,000 units over four months at a level of 9,000 per month. a. What is the ending inventory at the end of each month?
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If seasonal production is used, it is assumed that inventory will directly match sales for each mont...
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