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Question: 1. Rad Co. provides the following sales forecast for the next four months:

                                 April         May          June       July

Sales (units) . . . . . . . . 500         580           530        600

The company wants to end each month with ending finished goods inventory equal to 20% of next month's sales. Finished goods inventory on April 1 is 174 units. Assume July's budgeted production is 540 units. Prepare a production budget for the months of April, May, and June.

2. Participatory budgeting can sometimes lead to negative consequences. Identify three potential negative outcomes that can arise from participatory budgeting.

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