Question
Victoria Corporation manufactures quality vases. Budgeted sales and production data for the vases are asfollows: Month 1 budgeted unit sales 1,500 Month 2 budgeted unit
Victoria Corporation manufactures quality vases. Budgeted sales and production data for the vases are asfollows:
Month 1 budgeted unit sales
1,500
Month 2 budgeted unit sales
2,700
Month 3 budgeted unit sales
4,000
Month 1 budgeted unit production
2,400
Month 2 budgeted unit production
3,500
Month 3 budgeted unit production
3,400
Raw material required for each finished unit(in pounds)
1
Each vase requires one pound of clay in its manufacture. Victoria Corporation has a policy that the inventory of clay at the end of each month needs to be equal to 10% of the production needs for the following month. At the beginning ofJanuary, 240 pounds of clay were in inventory. How many pounds of clay would Victoria Corporation need to purchase in February(Month 2)?
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