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A widget producer is in its first year of operations and plans to sell one widget at $25 per unit. The company expects sales to grow at 20% above the prior month's sales units. Projected sales units are 100 for April. The company wishes to have the number of projected sales units for the current month plus 10% of the prior month's projected sales units available for each month.

How many units would the company plan to have available for May?

A. 100
B. 120
C. 130
D. 132
E. None of these options

Answer :

The company would plan to have 132 units available for May.

To calculate the projected sales units for May, we start with the projected sales units for April, which is 100. Then we add 10% of the prior month's projected sales units, which is 10% of 100 = 10. Adding these two values, we get 100 + 10 = 110.

Since the company expects sales to grow at 20% above the prior month's sales units, we calculate 20% of 110, which is 0.20 * 110 = 22. Adding this value to the previous result, we get 110 + 22 = 132.

Therefore, the company would plan to have 132 units available for May.

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