How many pounds of foam does The Posh Cushion Company need to
Chapter7: Budgeting
Section: Chapter Questions
Problem 4EB: Rehydrator makes a nutrition additive and expects to sell 3,000 units in January, 2,000 in February,...
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Transcribed Image Text:The Posh Cushion Company manufactures foam cushions. The number of cushions to be produced in the upcoming three months follows:
Number of foam cushions to be produced in July
Number of foam cushions to be produced in August
Number of foam cushions to be produced in September
13,000
15,000
7,000
Each cushion requires 2 pounds of the foam used as stuffing. The company has a policy that the ending inventory of foam each month must
be equal to 15% of the following month's expected production needs. How many pounds of foam does The Posh Cushion Company need to
purchase in August?
OA. 32,100
B. 34,500
OC. 25,500
OD. 27,600
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