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Midland Company buys tiles and prints different designs on them for souvenir and gift stores. It buys the tiles from a small company in Europe,
Midland Company buys tiles and prints different designs on them for souvenir and gift stores. It buys the tiles from a small company in Europe, so at all times it keeps on hand a stock equal to the tiles needed for three months sales. The tiles cost $1.25 each and must be paid for in cash. The company has 29,000 tiles in stock. Sales estimates, based on contracts received, are as follows for the next six months:
January | 13,300 | ||
February | 18,200 | ||
March | 13,600 | ||
April | 14,200 | ||
May | 9,600 | ||
June | 6,200 | ||
Required:
a. & b. Estimate purchases (in units) and cash required to make purchases in January, February, and March.
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