Mien Co. plans to launch its new product, the Nixit, in April of this year. The company is budgeting April sales of 53,000 units. Mien’s budget requires 6,000 units of Nixit in its finished goods inventory at the end of April; there were 8,000 units of NIxit on hand at the beginning of the month, which were produced in March. The production of one unit of Nixit requires 4 kilos of the chemical Loire. There were 125,000 kilos of Loire on hand at the beginning of April and, based on next month’s production, the desired ending inventory of Loire was 75,000 kilos.

1. What is the required production (in units) of Nixit in the month of April?

2. What are the required purchases of chemical Loire (in kilos) for the month of April?

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1 Production budget for April Sales units Closing inventory of finishe... View the full answer