Nutriproducts Inc. produces and sells nutritional drinks and snacks. One of their products, called Nutritaste, is a drink that contains aa and grape nectars. The controller is planning the cash requirements for the next months production of Nutritaste.

For the month of June, the production manager is planning to produce 125,000 litres. Each litre requires 200 millilitres of aa nectar and 800 millilitres of grape nectar. The cost of aa nectar is $0.65 per litre and grape nectar is $1.85 per litre.

The inventory control clerk usually keeps enough inventory on hand to satisfy 5% of the next months production. Julys production is expected to be 135,000 litres.

How much cash should be available for purchases of aa and grape nectar in June?

a) $200,445 b) $201,250 c) $202,055 d) $313,750