Garry's Corporation's most recent production budget indicates the following required production:
October November December
Required Production (units) 210,000 175,000
110,000
Each unit of a finished product requires 5 pounds of raw materials. The company maintains raw materials inventory equal to 25% of the next month's expected production needs.
How many pounds of raw material should Garry plan on purchasing for the month of November?
A. 893,500
B. 793,750
C. 1,006,250
D. 1,012,500
Answers: 2
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