Hongse Co. makes paper lanterns. Each lantern requires 1.4 pints of dye to complete. The company is now planning raw materials needs for the third quarter. To keep production and sales moving smoothly, the company requires that the raw materials on hand at the end of each month must equal 50% of the following months production needs for raw materials. At the beginning of July, there were 10,150 pints of dye on hand. Budgeted sales and production targets are provided for July and August:

	July	August
Sales (in units):	11,600	17,400
Production requirments (in units):	14,500	21,750

How much dye should be purchased in July?

Multiple Choice

• 18,270 pints

• 25,375 pints

• 15,225 pints

• 35,525 pints