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Gustavo Supply is a merchandiser of three different products. The company's February 28 inventories are footwear, 18,500 units; sports equipment,...

Gustavo Supply is a merchandiser of three different products. The company’s February 28 inventories are footwear, 18,500 units; sports equipment, 80,000 units; and apparel, 50,000 units. Management believes that excessive inventories have accumulated for all three products. As a result, a new policy dictates that ending inventory in any month should equal 29% of the expected unit sales for the following month. Expected sales in units for March, April, May, and June follow.

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