Dustman Manufacturing Corporation's most recent production budget indicates the following required production: January February March April Required production (units) 4,000 6,000 5,500 5,000 Each unit of finished product requires 3 feet of raw materials. The company maintains raw materials inventory equal to 2,000 feet plus 10% of the next month's expected production needs. The raw material used in Dustman Manufacturing Corporation's product costs $4.50 per foot. What is the value of raw material that Dustman Manufacturing should plan on purchasing for the month of February

Purchase budget = $80,325

Explanation:

Usage budget for the month of February=  6,000×  3  = 18,000 feet

Closing inventory for the month of February

=2000 + 10% × March usage budget

= 2000 + 10% × (5,500×  3)  =   3,650 feet

Opening inventory for February = closing inventory for January

closing inventory for January

=2000 + 10% × February usage budget

= 2000 + 10% × (6,000×  3) = 3800 feet

Raw material purchase budget for February

= Usage + closing inventory - opening inventory

= 18,000 + 3,650-3800

=17850 feets

Budget in $ = 17850 feet × 4.50

                     = $80,325

u = 30

continuing your method

= +

subtract from both sides

= - thus

= -

= ⇒ u = 30

answer; ///(d); determining who competes most closely   with whom evaluating whether industry driving forces and competitive pressure favor some strategic groups and hurt others, and ascertaining whether the profit potential of different strategic groups varies due to the strengths and weaknesses in each groups respective market positions;