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Suppose Steel City manufactures cast iron skillets. One model is a 10 -inch skillet that sells for $32. Steel City projects sales of 70010 -inch
Suppose Steel City manufactures cast iron skillets. One model is a 10 -inch skillet that sells for $32. Steel City projects sales of 70010 -inch skillets per month. The production costs are $13 per skillet for direct matenals, $3 per skillet for direct labor, and $4 per skillet for manufacturing overhead. Steel City has 2510 -inch skillets in inventory at the beginning of July but wants to have an ending inventory equal to 35% of the next month's sales. Selling and administrative expenses for this product line are $1,700 per morth How many 10 -inch skillets should Steel City produce in July? A. 945 skillets B. 700 skillets C. 970 skillets D. 920 skillets
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