How many ounces of plastic resin should mate plan

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Reference no: EM1314229

Mate Boomerang Corporation manufactures and sells plastic boomerangs. Expected boomerang sales (in units) for the upcoming months are as follows:

	Expected
	Unit
	Sales
July	12,000
August	15,000
September	10,000
October	8,000
November	7,000
December	11,000

Seven ounces of plastic resin are needed to produce every boomerang. Mate likes to have enough plastic resin on hand at the end of the month to cover 25% of the next month\'s production requirements. Mate also likes to maintain a finished goods inventory equal to 10% of next month's estimated sales.

Required:

How many ounces of plastic resin should Mate plan on purchasing during the month of October?

Reference no: EM1314229

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