BIRMINGHAM STEAL

The Sales budget of the Birmingham Steal Corporation, a manufacturer of baseball uniforms, shows budgeted sales (in uniforms) for the first 5 months of next year as follows:

	Uniforms
November	4,000
December	18,000
January	2,000
February	6,000
March	12,000
April	18,000
May	2,000

B.Independent of 3.A. Birmingham Steal's policy is to keep the direct materials in its raw materials inventory atthe end of each month to a minimum, but without letting it fall below 5,000 yards.Assume that December 1raw materials inventory has 5,000 yards of direct materials and that the company's only supplier is willing tosell a maximum of 60,000 yards of cotton to the company per month.

B. Independent of 3.A. Birmingham Steal's policy is to keep the direct materials in its raw materials inventory at the end of each month to a minimum, but without letting it fall below 5,000 yards. Assume that December 1 raw materials inventory has 5,000 yards of direct materials and that the company's only supplier is willing to sell a maximum of 60,000 yards of cotton to the company per month