. . Broncos Corp, manufactures wooden frames with bronco medallion for framing the college degrees awarded by Western Michigan University. Each Bronco frame sells for $150 and requires: 5 linear feet of special Oak wood that costs $4.00 per foot Other direct material package (each package includes one Bronco Medallion, a glass face, and a cardboard cutout) that costs $25 each package (bought from an outside supplier) 30 minutes of labor hours to build (Labor cost averages $15.00 per hour) Bronco Corp. has the following inventory policies: Ending finished goods inventory should be 25% of next month's sales. Ending inventory of Oak wood should be 30% of next month's production need. Ending inventory of other direct material package should be 20% of next month's production need. (the supply chain for the other direct material packages is quite efficient and therefore, company maintains a smaller inventory of these packages as compared to Oak wood inventory) As per the Marketing and Sales department of the Bronco Corp., sales are high in the month of graduation and the month following the graduation during Fall and Spring each year. Therefore, months of December, January, April, and May are considered high demand months. In a November budget meeting of the current year, the Sales Manager provided following estimates of unit sales for the upcoming months (December current year - May next year): December 2,000 frames January 1.500 frames February 800 frames March 760 frames April 2,100 frames May 1,800 frames . . Broncos Corp, manufactures wooden frames with bronco medallion for framing the college degrees awarded by Western Michigan University. Each Bronco frame sells for $150 and requires: 5 linear feet of special Oak wood that costs $4.00 per foot Other direct material package (each package includes one Bronco Medallion, a glass face, and a cardboard cutout) that costs $25 each package (bought from an outside supplier) 30 minutes of labor hours to build (Labor cost averages $15.00 per hour) Bronco Corp. has the following inventory policies: Ending finished goods inventory should be 25% of next month's sales. Ending inventory of Oak wood should be 30% of next month's production need. Ending inventory of other direct material package should be 20% of next month's production need. (the supply chain for the other direct material packages is quite efficient and therefore, company maintains a smaller inventory of these packages as compared to Oak wood inventory) As per the Marketing and Sales department of the Bronco Corp., sales are high in the month of graduation and the month following the graduation during Fall and Spring each year. Therefore, months of December, January, April, and May are considered high demand months. In a November budget meeting of the current year, the Sales Manager provided following estimates of unit sales for the upcoming months (December current year - May next year): December 2,000 frames January 1.500 frames February 800 frames March 760 frames April 2,100 frames May 1,800 frames