Question: Offenbach & Son has just made its sales forecasts and its marketing department estimates that the company will sell 225,000 units during the coming year.

Offenbach & Son has just made its sales forecasts and its marketing department estimates that the company will sell 225,000 units during the coming year. In the past, management has maintained inventories of finished goods at approximately one month's sales. The inventory at the start of the budget period is 15,000 units. Sales occur evenly throughout the year.
Required
Estimate the production level required for the coming year to meet these objectives.

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