UNIT 8 $6,860 ($9,800 X .70) COST OF NEXT 7 UNITS = (8 X $6,860...

55. Correct answer c. The units to be purchased in February total 6,100 units as shown below.

February unit sales = ($66,000 + $44,000) ÷ $20 = 5,500 units

March unit sales = $150,000 ÷ $20 = 7,500 units

February purchase = (5,500 x .7) + (7,500 x .3) = 6,100 units