Hanover Inc. sells buckets for $15 each. Budgeted unit sales for 4 months of 2014 are: $$\begin{array} { l l }
\text { March } & 26,000 \text { buckets } \
\text { April } & 28,000 \text { buckets } \
\text { May } & 22,000 \text { buckets } \
\text { June } & 25,000 \text { buckets }
\end{array}$$ Hanover desires to have buckets on hand at the end of each month equal to 16 percent of the following month's budgeted unit sales. Each bucket requires 3.9 pounds of plastic. At the end of each month, Hanover desires to have 12 percent of production material needs for the next month on hand. The plastic costs $0.40 per pound. How many buckets should Hanover produce during May?

Question

Hanover Inc. sells buckets for $15 each. Budgeted unit sales for 4 months of 2014 are: $$\begin{array} { l l } 
\text { March } & 26,000 \text { buckets } \
\text { April } & 28,000 \text { buckets } \
\text { May } & 22,000 \text { buckets } \
\text { June } & 25,000 \text { buckets }
\end{array}$$ Hanover desires to have buckets on hand at the end of each month equal to 16 percent of the following month's budgeted unit sales. Each bucket requires 3.9 pounds of plastic. At the end of each month, Hanover desires to have 12 percent of production material needs for the next month on hand. The plastic costs $0.40 per pound. How many buckets should Hanover produce during May?

Quizplus · Accepted Answer

The Answer of Hanover Inc. sells buckets for $15 each. Budgeted unit sales for 4 months of 2014 are: $$\begin{array} { l l } 
\text { March } & 26,000 \text { buckets } \
\text { April } & 28,000 \text { buckets } \
\text { May } & 22,000 \text { buckets } \
\text { June } & 25,000 \text { buckets }
\end{array}$$ Hanover desires to have buckets on hand at the end of each month equal to 16 percent of the following month's budgeted unit sales. Each bucket requires 3.9 pounds of plastic. At the end of each month, Hanover desires to have 12 percent of production material needs for the next month on hand. The plastic costs $0.40 per pound. How many buckets should Hanover produce during May?

Hanover Inc Hanover Desires to Have Buckets on Hand at the End