Mate Boomerang Corporation manufactures and sells plastic boomerangs. Expected boomerang sales (in units) for the upcoming months are as follows:
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July |
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Expected unit sales |
12,000 |
15,000 |
10,000 |
8,000 |
7,000 |
11,000 |
Seven ounces of plastic resin are needed to produce every boomerang. Mate likes to have enough plastic resin on hand at the end of the month to cover 25% of the next month”s production requirements. Mate also likes to maintain a finished goods inventory equal to 10% of the next month”s estimated sales.
Required:
How many ounces of plastic resin should Mate plan on purchasing during the month of October?