Transitioning from employee to manager has been exciting for Daniel! He enjoys having the responsibility and authority to make decisions, and it is rewarding to join the management team, sharing insights to make better decisions. One of his first responsibilities is to address the DM purchases budget. The company has a strong relationship with its current supplier, but the quality of the supplier's DM has declined. Knowing this, Daniel has already reached out to a different vendor to see what kind of a deal it might offer. The DM information for Daniel's division and for each vendor just described is as follows. DM on hand as of July 1 slightly exceeds expectations at 1,560 linear board feet. Each unit requires 4 linear board feet; Daniel is most comfortable if the company has 20% of the following month's production needs on hand. The cost per linear foot is $5.50 with the current supplier; it's $6.00 with the new vendor. Planned production for July is 1,900 units; for August is 2,400 units; for September is 2,100 units; and for October is 1,800 units. The A/P balance related to June DM purchases is $34,125 on July 1.