Question: Please help, stuck on this question for 2 hours: Two grams of musk oil are required for each bottle of Mink Caress, a very popular
Please help, stuck on this question for 2 hours:
| Two grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a small company in western Siberia. The cost of the musk oil is $1.90 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3: |
| Year 2 | Year 3 | ||||||
| First | Second | Third | Fourth | First | |||
| Budgeted production, in bottles | 82,000 | 112,000 | 172,000 | 122,000 | 92,000 | ||
| Musk oil has become so popular as a perfume ingredient that it has become necessary to carry large inventories as a precaution against stock-outs. For this reason, the inventory of musk oil at the end of a quarter must be equal to 20% of the following quarter |
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