1). If sales levels were 10% higher than budgeted, how many pounds of raw materials would the purchasing agent need to rush order each month so he can meet demand and the required ending inventory as shown in the budget?

2). Why does it appear that the purchasing department is having trouble meeting its budget?

3). Is it appropriate to blame Bob for all of the purchasing problems?

4). If the president of the company does make some changes, what changes would you suggest heconsider?

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Unit sales Add: Desired ending inventory Subtottal Less: Beginning inventory Budgeted production Pounds of raw materials per unit Required pounds of raw materials Add: Desired ending inventory for raw material Less: Beginning inventory of raw materials Total raw material needs (pounds) 350,000.00 25.000.00 335,000.00 375,000.00 (35.000.00) 305,000.00 340,000.00 1.1 374,000.00 27,500.00 (37,400.00) 364.100.00 300,000.00 35,000.00 (30,000.00) 1.1 335,500.00 37,400.00 (33,550.00) 339.350.00