Jeremy Inc.produces leather handbags.The production budget for the next four months is: July 5,000 units,August 7,000,September 7,500,October 8,000.Each handbag requires 0.5 square meters of leather.Jeremy Inc.'s leather inventory policy is 30% of next month's production needs.If the leather policy is met,what will the July 1 inventory be?

Question

Quizplus · Accepted Answer

For July 1 inventory, we look at August's production needs since the policy is based on the next month's requirements. August needs 7,000 units, each requiring 0.5 square meters of leather, totaling 3,500 square meters. 30% of 3,500 square meters is 1,050 square meters.