Question
Suppose Iron Handles manufactures cast iron skillets. One model is a? 10-inch skillet that sells for $26. Iron Handles projects sales of 600 ?10-inch skillets
Suppose Iron Handles manufactures cast iron skillets. One model is a? 10-inch skillet that sells for $26. Iron Handles projects sales of 600 ?10-inch skillets per month. The production costs are $10 per skillet for direct? materials, $2 per skillet for direct? labor, and $5 per skillet for manufacturing overhead. Iron Handles has 25 10-inch skillets in inventory at the beginning of July but wants to have an ending inventory equal to 25?% of the next? month's sales. Selling and administrative expenses for this product line are $1,800 per month.How many? 10-inch skillets should Iron Handles produce in? July?
A. 775 skillets
B. 600 skillets
C. 725 skillets
D. 750 skillets
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