Question
Mountain Breads produces organic bread that is sold by the loaf. Each loaf requires 0.4 kg of flour. The company pays $3.50 per kilogram of
Mountain Breads produces organic bread that is sold by the loaf. Each loaf requires 0.4 kg of flour. The company pays $3.50 per kilogram of the local organic flour it uses in its loaves. Mountain Breads expects to produce the following number of loaves in each of the upcoming four months:
The companys policy is to have 20% of the following months flour needs on hand at the end of each month. At the end of June, there will be 240 kg on hand. What will the total cost of flour purchases be for the month of August?
A. | The total cost of flour purchase for August will be $ 5,152. | |
B. | The total cost of flour purchase for August will be $ 6,216. | |
C. | The total cost of flour purchase for August will be $12,880. | |
D. | The total cost of flour purchase for August will be $ 4,424. | |
E. | The total cost of flour purchase for August will be $ 5,320. |
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