Question: 95. Figure 9-2. Kenner Company produces two products. SR200 and TX500. months are as follows: May June July August Budgeted sales for four SR200

95. Figure 9-2. Kenner Company produces two products. SR200 and TX500. months

95. Figure 9-2. Kenner Company produces two products. SR200 and TX500. months are as follows: May June July August Budgeted sales for four SR200 8,000 13,000 11,000 18,000 TX500 20,000 32,000 39,000 46,000 Kenner's ending inventory policy is that SR200 should have 15 percent of next month's sales in ending inventory and TX500 should have 40 percent of next month's sales in ending inventory. On May 1, there were 1,200 units of SR200 and 9,000 units of TX500. TX500 requires 6 units of component A. (SR200 does not use component A.) There were 30,000 units of component A in inventory on May 1. Kenner wants to have 20 percent of the following month's production needs in inventory for Component A. Refer to Figure 9-2. What is the budgeted production of SR200 for May in units? A. 8,750 B. 9,950 c. 8,000 D. 1,200 E. 10,500

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