Renata has set-up a jam-making business. As the fruit-picking season approaches, she needs to calculate her raw material requirements for the year ahead. Given her sales estimates in Table 12.13:

a) Calculate the production budget using the opening inventory assumptions in Table 12.13 and assuming that closing inventory should be 8% of sales units.

b) Calculate how much raw material is needed by each type of raw material and in total using the assumptions in Table 12.14. Each jar of jam also requires one jar, one lid, and two labels.

c) Calculate the total raw material purchase budget if strawberries cost €1.32 per kg, raspberries cost €1.56 per kg, and kiwis cost €2.30 per kg. Sugar costs 20 cents per kg, jars cost 12 cents, lids cost 3 cents, and labels cost 2 cents each.

d) Calculate the cost per jar for each type ofj am.

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Table 12.13 Jam sales budget in units (jars) Strawberry Raspberry Kiwi Sales units 178,000 236,000 53,000 Opening inventory 16,300 25,000 4,200