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Galaxy Co. is anticipating sales of 53,000 units of product Mars for May 2020. The manufacture of one unit of Mars requires 4 kilos of
Galaxy Co. is anticipating sales of 53,000 units of product Mars for May 2020. The manufacture of one unit of Mars requires 4 kilos of chemical Mercury. During May 2020, Galaxy plans to reduce the inventory of Mercury by 50,000 kilos and increase the finished goods inventory of Mars by 6,000 units. There is no Mars work-in-process inventory.
Required: A. Determine how many units of Mars the firm must produce during the month.
B. How many kilos of Mercury should Galaxy budget to purchase in May 2020?
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