Question
Farlow Plc manufactures two products, Dip and Bip. It intends to produce 2,000 units of each product in the next year to meet the sales
Farlow Plc manufactures two products, Dip and Bip. It intends to produce 2,000 units of each product in the next year to meet the sales budget. Each Dip requires 2 kg of material Z and 1 kg of material Y and each Bip requires 3 kg of material Z and 4 kg of material Y. At present there are 200 kg of Z and 500 kg of Y in inventory. Farlow Plc intends to increase the inventory levels of these materials by the end of the year to 600 kg of Z and 800 kg of Y. Material Z costs 4 per kg and material Y costs 5 per kg.
What is the total materials purchases for the next year?
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