Question
Suppose CookPro manufactures cast iron skillets. One model is a10-inch skillet that sells for $36. CookPro projects sales of 625 10-inch skillets per month. The
Suppose CookPro manufactures cast iron skillets. One model is a10-inch skillet that sells for $36. CookPro projects sales of 625 10-inch skillets per month. The production costs are $13 per skillet for directmaterials, $3 per skillet for directlabor, and $6 per skillet for manufacturing overhead. CookPro has 35 10-inch skillets in inventory at the beginning of July but wants to have an ending inventory equal to 40% of the nextmonth's sales. Selling and administrative expenses for this product line are $1,100 per month.
How many10-inch skillets should CookPro produce inJuly?
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