Question
Quality Corporation manufactures quality vases. Budgeted sales and production data for the vases are asfollows: Month 1 budgeted unit sales 1,800 Month 2 budgeted unit
Quality Corporation manufactures quality vases. Budgeted sales and production data for the vases are asfollows:
Month 1 budgeted unit sales
1,800
Month 2 budgeted unit sales
2,100
Month 3 budgeted unit sales
3,200
Month 1 budgeted unit production
2,500
Month 2 budgeted unit production
2,800
Month 3 budgeted unit production
3,400
Raw material required for each finished unit(in pounds)
1
Each vase requires one pound of clay in its manufacture. Quality Corporation has a policy that the inventory of clay at the end of each month needs to be equal to30% of the production needs for the following month. At the beginning of Month1, 750 pounds of clay were in inventory. How many pounds of clay would Quality Corporation need to purchase in Month2?
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