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Question - Midland Company buys tiles and prints different designs on them for souvenir and gift stores. It buys the tiles from a small company in Europe, so at all times it keeps on hand a stock equal to the tiles needed for three months' sales. The tiles cost $0.75 each and must be paid for in cash. The company has 297000 tiles in stock. Sales estimates, based on contracts received, are as follows for the next six months:
January 12,200
February 18,600
March 13,300
April 14,300
May 9,100
June 7,500
Required - Estimate purchases (in units) and cash required to make purchases in January, February, and March.
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