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Jared IncProduces Leather Handbags

Question 42

Multiple Choice

Jared Inc.produces leather handbags.The sales 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.Jared Inc.'s finished goods inventory policy is 10% of next month's sales needs.Jared Inc.'s leather inventory policy is 30% of next month's production needs.What will leather purchases be in August?


A) 3,425 square meters
B) 3,450 square meters
C) 3,508 square meters
D) 3,600 square meters

Correct Answer:

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