Pitt Corp Makes and Sells a Single Product Widgets

question 13

Essay

Pitt Corp. makes and sells a single product widgets. Two pounds of sand are needed to make one widget. Budgeted production of widgets for the next two months follows:
September 25000 units
October 31000 units
The company wants to maintain monthly ending inventories of sand equal to 20% of the following month's production needs. On August 31 10000 pounds of sand were on hand.
Instructions
How much sand should be purchased in September?

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Definitions:

Budget

A financial plan for a defined period, outlining expected revenues and expenditures.

Exact Income

The precise amount of money received by an individual or entity within a specific period.

Point

Point often refers to a specific location or position in geometric space or in the context of discussions, an argument or idea being made.

Budget Constraint

A financial limitation that represents the combination of goods and services a consumer can afford with their available income.