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How many ounces of carrots should Yumm plan

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Question 1 - Yumm Dairy Corporation manufactures carrot-flavored ice cream. Yumm's production budget indicated the following gallons to be produced for the upcoming months:

 

January

February

March

Gallons to be produced

100,000

120,000

150,000

Four (4) ounces of carrots are needed for each gallon of ice cream. Yumm also likes to have enough carrots on hand to cover 5% of the next month's production needs for carrots. How many ounces of carrots should Yumm plan on purchasing during the month of February?

Question 2 - A company requires 200 pounds of plastic to meet the production needs of a product. It currently has 20 pounds of plastic inventory. The desired ending inventory of plastic is 60 pounds. How many pounds of plastic should be budgeted for purchasing during the coming period?

Reference no: EM132492617

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