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Compute the minimum number of one-litre bottles Purity Ltd

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Question - Purity Ltd bottles and distributes mineral water from the company's natural springs in Hepburn Springs. Purity markets two mineral water products: 1-litre disposable plastic bottles and 15-litre reusable plastic containers.  For 2019, Purity Ltd's marketing managers project monthly sales of 322 000 1-litre bottles. Average selling prices are estimated at $0.2 per 1-litre bottle. Purity Ltd begins 2019 with 958 000 1-litre bottles in inventory. The manager of operations requests that 1-litre bottles ending inventory on 31 December 2019 be no less than 767 000 bottles. Based on sales projections as budgeted above, compute the minimum number of 1-litre bottles Purity Ltd must produce during 2019.

Reference no: EM133124146

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