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Prepare the DM purchases budget for the third quarter, assuming Anthony stays with the current supplier. Specify amounts for each month and for the quarter
Prepare the DM purchases budget for the third quarter, assuming Anthony stays with the current supplier. Specify amounts for
each month and for the quarter overall. Round DM cost per linear foot to decimal places, egTransitioning from employee to manager has been exciting for Anthony! He enjoys having the responsibility and authority to make
decisions, and it is rewarding to join the management team, sharing insights to make better decisions. One of his first responsibilities is
to address the DM purchases budget. The company has a strong relationship with its current supplier, but the quality of the supplier's
DM has declined. Knowing this, Anthony has already reached out to a different vendor to see what kind of a deal it might offer. The
DM information for Anthony's division and for each vendor just described is as follows.
DM on hand as of July slightly exceeds expectations at linear board feet.
Each unit requires linear board feet; Anthony is most comfortable if the company has of the following month's
production needs on hand.
The cost per linear foot is $ with the current supplier; it's $ with the new vendor.
Planned production for July is units; for August is units; for September is units; and for October is
units.
The AP balance related to June DM purchases is $ on July
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