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Question 38. On January 1, Bandy Manufacturing plans to introduce a product called Handy Dandy. The company plans to sell each unit of Handy Dandy

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Question 38. On January 1, Bandy Manufacturing plans to introduce a product called Handy Dandy. The company plans to sell each unit of Handy Dandy for $25.00. Management has forecast the following in sales 9 units for the first three months. January February March Sales units 35,000 28,000 40,000 Each unit of Handy Dandy requires 2 kg of Dingaling and 1 hour of direct labour. Management wants to end each month with a Handy Dandy inventory level equal to 10% of the following month's sales, and a Dingaling inventory equal to 5% of the following month's production. Dingaling can be purchased for $3 per kg and direct labour costs are estimated to be $5.00 per hour. How many kg of Dingaling should be purchased in January? Bandy plans to have no inventory of Dingaling on January 1: A. 75,600 B*. 78,520 C. 72,800 D. 72,680 E. 78.400

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