Nelly is a genius and at the age of just 21 she has created her own unique hair conditioner. Her haircare is specifically for curly
Nelly is a genius and at the age of just 21 she has created her own unique hair conditioner. Her haircare is specifically for curly haired women and she creates and ships her own product. Each container of conditioner requires .60 ounces of malt. The number of conditioner containers nelly expected to sell and create are listed below
Estimated Sales | Expected Production | |
september | 2000 | 2030 |
october | 2100 | 2120 |
november | 2300 | 2260 |
december | 1900 | 1910 |
On September 1, Nelly ended up having 180 containers of conditioner & 690 ounces of malt in beginning inventory (May differ from what was originally budgeted) Malt does not go bad and can be stocked on the shelves for years so nelly wants to have enough malt on hand at one end of each month equal to 50 ounces plus 50% of the following months production needs Malt is budgeted to cost $0.40 per ounce, Nelly has the following payment expectations with the malt seller: Nelly pays cash for 70% of her purchases in the month of sale and 30% in the following month sale
Questions:
How much ounces of Malt should Nelly buy in September? What percent of following month's sales does nelly budget to have in the desired ending inventory of finished goods?
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