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Moon Company determined that it has to produce 65,000 units in the coming year. Each unit requires five feet of plastic tubing. The tubing inventory

Moon Company determined that it has to produce 65,000 units in the coming year. Each unit requires five feet of plastic tubing. The tubing inventory at the beginning of the budget year is estimated to be 62,500 feet. Materials on hand at the end of the year are targeted to equal 50,000 feet. Purchase price of each foot is $1.45.

What are total costs of materials to be purchased?

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