Comfy Inc.uses five yards of wool in each blanket it produces.Comfy's production budget next year is 30,000 blankets.The anticipated wool inventory at January 1 is 30,000 yards,but the company desires to reduce the inventory to 20,000 yards by the end of the year.Each yard of wool costs $10.How many yards of wool should Comfy purchase?

Question

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Comfy needs 150,000 yards of wool (30,000 blankets x 5 yards per blanket) for production. It wants to reduce inventory by 10,000 yards, so it needs to purchase 140,000 yards (150,000 - 10,000).

Comfy IncUses Five Yards of Wool in Each Blanket It Produces