The Good Sports Store (GSS) is a merchandising company with retail stores located throughout Australia. It sources the sporting goods that it sells in its stores from suppliers based in Australia and abroad.
Data from GSS’s budget for one of its most popular products (the Product) for the two upcoming quarters i.e., Quarter 1 and Quarter 2 of 2023 are as follows:
The Product
Q1
Q2
Budgeted sales in units
50,000
55,000
Budgeted selling price per unit
$4.00
$4.00
Other information on the Product:
Purchases from its suppliers are to take place in the same quarter during which sales are expected to be made
Sales dollars is expected to grow by 10% each quarter in 2023 (compared to the prior quarter)
Selling price per unit is expected to remain unchanged in 2023
Budgeted ending inventory for each quarter: 5% of next quarter's sales in units
Inventory at the end of Q4 of the previous year: 7,000 units
The number of units of the Product that GSS expects to buy from its suppliers in Quarter 2, 2023 is closest to:
Group of answer choices
a.55,000 units
b.54,725 units
c.55,275 units
d.48,275 units
e.62,275 units