Kitchen Stuff produces spatulas made out of acrylic.The company has estimated sales for June at 12,000, July at 12,800, August at 15,000, and September at 16,000 spatulas.The company plans to have 15% of the next month's anticipated unit spatula sales and 22% of the next month's acrylic needed for production on hand at the end of each month.Each spatula uses 7 ounces of acrylic, which is purchased at a cost of $0.22 per ounce.How much is budgeted production for July?

Question

Quizplus · Accepted Answer

To calculate the budgeted production for July, we need to use the following formula:

Budgeted production = Anticipated sales for July + (0.15 x Anticipated sales for August)

Anticipated sales for July = 12,800

Anticipated sales for August = 15,000

0.15 x Anticipated sales for August = 0.15 x 15,000 = 2,250

Budgeted production = 12,800 + 2,250 = 13,050 units

Therefore, the answer is B) 13,130 units, which is the closest answer choice.

Kitchen Stuff Produces Spatulas Made Out of Acrylic