Question: Leonard Company is preparing its third quarter production budget. Projected sales in units are 600 for July, 680 for August, and 750 for September. Leonard's

Leonard Company is preparing its third quarter production budget. Projected sales in units are 600 for July, 680 for August, and 750 for September. Leonard's policy is to have finished goods inventory equal to 20 per cent of the next month's projected unit sales. How many units should be produced in August?

a. 694 units

b. 710 units

c. 666 units

d. 680 units

e. none of these

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