Part 3 (20 minutes)

Global Colors manufactures a special line of graphic tubing items. For the net coming year, the company estimates it will sell 150,000 units of this item. The begining lishee goods inventory contains 40,000 units. The target for next year's ending inestory is 20,000 units.

Each unit requires 5 feet of plastic tubing. The tubing inventory currently includes 100,000 feet of the required tubing. Materials on hand are targeted to equal three month's production. Any shortage in materials will be made up by the immediate purchase of materials.

Required:

Compute the production target and the materials requirements for the coming period.