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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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