The Sun Company manufactures a special line of graphic tube items. The company estimates that it will sell 75,000 units of this item in 2008. Beginning inventory of finished goods contains 20,000 units. The target for ending inventory each year is 10,000 units.

Each unit requires five feet of plastic tubing. The pipeline inventory currently includes 70,000 feet of required pipeline. Available materials are intended to equal three months' production. Any shortage of materials will be offset by immediate purchase of materials. Sales take place evenly throughout the year.

Questions

What is the production budget (in units) for 2008?

What are the material requirements (in feet) for 2008?

Answer rating: 100% (QA)

To determine the production budget for 2008 we need to calculate the total number of un... View the full answer