Question
Clorox Corporation manufactures home cleaning products. One of the products, Lysol, requires 2 grams of chlorine and 5 grams of benzene per unit manufactured. Chlorine
Clorox Corporation manufactures home cleaning products. One of the products, Lysol, requires 2 grams of chlorine and 5 grams of benzene per unit manufactured. Chlorine is purchased from the supplier for $0.30 per gram and Benzene is purchased for $0.50 per gram. Clorox Corporation requires the finished goods inventory on hand at the end of each month to equal 4,000 units plus 25% of the next month's sales. The raw materials inventory on hand at the end of each month (for either Chlorine or Benzene) should equal 80% of the following month's production needs. The production budget calls for 26,000 units of Lysol to be manufactured in June and 32,000 units of Lysol to be manufactured in July. On May 31 there will be 41,600 pounds of Chlorine and 104,000 pounds of Benzene in inventory. How many pounds of Benzene need to be purchased during June?
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