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Danner Farm supply company manufactures and sells a pesticide called Snare. the following data are available for preparing budgets for Snare for the first two
Danner Farm supply company manufactures and sells a pesticide called Snare. the following data are available for preparing budgets for Snare for the first two quarters of 2009. 1. Sales: Quarter 1 28,000 bags; Quarter 2 42,000 bags with a selling price of 60 dollars a bag. 2. Direct materials: Each bag of Snare requires 4 lbs of Gumm at 4 dollars a bag and 6 lbs of Tarr at 1.50 a bag. 3. Desired inventory levels: Jan 1 April1 July 1 Snare(bags) 8,000 12,000 18,000 Gumm 9,000
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