Mate Boomerang Corporation manufactures and sells plastic boomerangs. Expected boomerang sales (in units) for the upcoming months are as follows:
|
Expected
|
|
Unit
|
|
Sales
|
July
|
12,000
|
August
|
15,000
|
September
|
10,000
|
October
|
8,000
|
November
|
7,000
|
December
|
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 next month's estimated sales.
Required:
How many ounces of plastic resin should Mate plan on purchasing during the month of October?