Optifast Company manufactures a product called Par. Each unit of Par requires 3 pieces of a material called Tee, whose standard price per piece is $5. Budgeted inventory levels are as follows:

Budgeted sales of Par are 50,000 for June and 30,000 for July. The company intends to take advantage of a 2/10, n/30 discount. Assume one third of the purchases of any month due for discount are paid in the following month.
Required:
Compute the cash required in July for purchases of Tee.

Transcribed Image Text:

June1.. July 1 August.. Par 5,000 3,000 3,000 Tee 20,000 14,000 11,000