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Kevin Co. manufactures leather briefcases and carryalls. Kevin's production manager has provided the following production budget. Each briefcase or carryall requires 1.2 yards of leather
Kevin Co. manufactures leather briefcases and carryalls. Kevin's production manager has provided the following production budget.
Each briefcase or carryall requires 1.2 yards of leather fabric and Kevin maintains an ending inventory of leather fabric equal to 25% of the next month's production needs.
Budgeted production
February 51200
March 43600
April 59100
May64900
June58100
If each yard of leather fabric costs $8.50, how much should Kevin budget for purchases of fabric in April?
- $617610
- $510170
- $768315
- $602820
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