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 $1.00 each and must be paid for in cash. The company has 26,000 tiles in stock. Sales estimates, based on contracts received, are as follows for the next six months: January 12,800 February 18,600 March 13,300 April 13,700 May 10,500 June 8,000 Required: a. & b.

Estimate purchases (in units) and cash required to make purchases in January, February, and March.

Units to be purchased: January: February: March:

Estimated Cost: January: February: March: