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Use the following information for questions #8 and #9. Budgeted sales for Sure Grip Tire Company were 51,000 passenger car tires and 16,000 truck tires.
Use the following information for questions #8 and #9. | ||||||||||
Budgeted sales for Sure Grip Tire Company were 51,000 passenger car tires and 16,000 | ||||||||||
truck tires. Rubber and steel belts are used in producing passenger car and truck tires | ||||||||||
according to the following table: | ||||||||||
Passenger | ||||||||||
Car | Truck | |||||||||
Rubber | 26 pounds per unit | 66 pounds per unit | ||||||||
Steel belts | 7 pounds per unit | 12 pounds per unit | ||||||||
The purchase prices of rubber and steel are $3.30 and $4.30 per pound, respectively. | ||||||||||
The estimated beginning inventories on January 1 for rubber and steel belts are 56,000 | ||||||||||
and 9,000 pounds, respectively. The desired ending inventories on December 31 of | ||||||||||
rubber and steel belts are 48,000 and 11,000 pounds, respectively. | ||||||||||
8. | How much is the sale of all of the passenger car tires expected to cost this year? | |||||||||
9. | What is the expected expenditure for steel belts this year? | |||||||||
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