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Sit-Down Ltd manufactures chairs. Each chair requires 425 grams of plastic costing $0.34 per 10 grams. Sit-Down uses the plastic to cover the chairs. Sit-Down
Sit-Down Ltd manufactures chairs. Each chair requires 425 grams of plastic costing $0.34 | |||||
per 10 grams. Sit-Down uses the plastic to cover the chairs. Sit-Down has budgeted | |||||
production of chairs for the next four months as follows: | |||||
Units | |||||
March | 3,500 | ||||
April | 4,400 | ||||
May | 4,900 | ||||
June | 6,300 | ||||
Inventory policy requires that sufficent plastic be in ending monthly inventory to satisfy | |||||
20 percent of the following month's production needs. The inventory of plastic at the | |||||
beginning of March equals exactly the amount needed to satisfy the inventory policy. |
Materials to be purchased (grams) in April is
a. | 2,201,500 | |
b. | 1,912,500 | |
c. | 1,564,000 | |
d. | 2,000,000 |
Materials to be purchased (grams) in May is
a. | 2,201,500 | |
b. | 1,912,500 | |
c. | 1,564,000 | |
d. | 2,000,000 |
Materials to be purchased ($) for May is
a. | $193,052 | |
b. | $74,851 | |
c. | $65,025 | |
d. | $53,176 |
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