Question
Denton Company manufactures three products (A, B, and C) from three raw materials (X, Y, and Z). The following table indicates the number of pounds
Denton Company manufactures three products (A, B, and C) from three raw materials (X, Y, and Z). The following table indicates the number of pounds of each material that is required to manufacture each type of product: Product Material X Material Y Material Z A 2 3 2 B 2 1 2 C 3 2 2 The company has a policy of maintaining an inventory of finished goods on all three products equal to 25 percent of the next month's budgeted sales. Listed below is the sales budget for the first quarter of the current year: Month Product A Product B Product C Jan. 10,000 11,000 12,000 Feb. 9,000 12,000 8,000 Mar. 11,000 10,000 10,000
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