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Garry's Corporation's most recent production budget indicates the following required production: October November December Required Production (units) 210,000 175,000 110,000 Each unit of a finished
Garry's Corporation's most recent production budget indicates the following required production:
October | November | December | |
Required Production (units) | 210,000 | 175,000 | 110,000 |
Each unit of a finished product requires 5 pounds of raw materials. The company maintains raw materials inventory equal to 25% of the next month's expected production needs. How many pounds of raw material should Garry plan on purchasing for the month of November?
A. 893,500
B. 793,750
C. 1,006,250
D. 1,012,500
I know the answer is B, but I'm not quite sure how to get the answer. Thanks in advance! :)
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