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Use the following information to answer the next two questions: Jackets Inc. makes and sells a single product, a fully-lined gender-neutral bomber jacket. Two yards
Use the following information to answer the next two questions: Jackets Inc. makes and sells a single product, a fully-lined gender-neutral bomber jacket. Two yards of black satin fabric are needed to make one bomber jacket. Each yard of fabric costs $5.00. Budgeted production of the jacket for the next five months is as follows: The company wants to maintain monthly ending inventories of fabric equal to 30% of the following month's production needs (For example, if next month's budgeted production is 10,000 jackets, Jackets Inc. wants to end the month with raw materials inventory that is exactly the amount of fabric it needs to produce 3,000 jackets). However it starts June with only 2,000 yards of fabric in inventory. If it helps, you may use this blank table to organize your work: 18. How much fabric does Jackets Inc. need to buy in June? A. 21,250 yards B. $106,250 C. 29,500 yards D. $166,250 E. 33,250 yards F. $120,000 G. 12,000 yards H. $60,000 19. How much money will Jackets Inc. spend on fabric in July? A. $125,000 B. $122,000 C. $62,500 D. $58,000 E. $25,000 F. $24,100 G. $12,500
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