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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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