Allegan Company produces computer processors. Sales budget for the next four months is as follows: March 10,400 units, April 13,700, May 16,400 and June 21,500. Allegan Companys ending finished goods inventory policy is 20% of the following months sales. March 1 beginning inventory is projected to be 2,080 units.

How many units of processors will be budgeted to be produced in April?

Mackinac Inc. produces denim backpacks. The production budget for the next four months is: July 5,000 units, August 7,000 units, September 7,500 units, October 8,000 units. Each backpack requires 0.5 square meters of denim. Mackinac Inc.s denim inventory policy is 30% of next months production needs. On July 1 leather inventory was expected to be 750 square meters. Denim is expected to cost $5.00 per square meter in June, but go up to $6.00 per square meter in July.

What is the expected cost of denim purchases in July?

Kent Corp. is considering the purchase of a new piece of equipment, which would have an initial cost of $506,000, a 7-year life, and $150,000 salvage value. The increase in cash flow each year of the equipment's life would be as follows: Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 $101,000 $ 93,000 $ 91,000 $ 80,000 $ 77,000 $ 72,000 $ 66,000 What is the payback period? Multiple Choice 6.10 years O 5.89 years O 5.43 years C 5.92 years