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John Co. manufactures leather briefcases and carryalls. Johns production manager has provided the following production budget. Each briefcase or carryall requires 1.2 yards of leather
John Co. manufactures leather briefcases and carryalls. Johns production manager has provided the following production budget. Each briefcase or carryall requires 1.2 yards of leather fabric and John maintains an ending inventory of leather fabric equal to 25% of the next months production needs.
February March April May June
50300 43000 59900 64900 57900
If each yard of leather fabric costs $6.50, how much should John budget for purchases of fabric in February?
a. $392340
b. $322465
c. $378105
d. $476190
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