Question
The Blatz Brewing Company produces 25 million hectolitres of beer each year. To put this in perspective, California consumed that much beer last year. A
The Blatz Brewing Company produces 25 million hectolitres of beer each year. To put this in perspective, California consumed that much beer last year. A sales forecast for Blatz is provided in the top row of the table. Blatz sells its beer at a wholesale price of US$85 per hectoliter. Blatz buys barley, hops, and yeast one month before the sale. Raw materials costs are 15% of the wholesale price of the beer. Blatz purchases its raw materials on account and pays its suppliers one month after the purchase. What are Blatz payments to suppliers in April?
Sales and Payments Forecast
Blatz Brewing Company
January | February | March | April | |
Sales Forecast - millions of hectoliters | 1 | 1 | 1.5 | 2 |
Sales Forecast - millions of dollars | $85 | $85 | $128 | $170 |
Purchases from Suppliers | ||||
Payments to Suppliers |
Group of answer choices
A) $23.5
B) $25.5
C) $32.5
D) $19.1
E) $31.9
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