contestada

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 $2.10 per gram. budgeted production of mink caress is given below by quarters for year 2 and for the first quarter of year 3:

Respuesta :

jepessoa

Answer:

Since there is not enough room here, I used an excel spreadsheet and attached it.  

Explanation:

                                                  Year 2                                    Year 3

                                 First Second Third Fourth  First  

Budgeted prod.  84,000 114,000 174,000 124,000  94,000

in bottles

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’s production needs. Some 33,600 grams of musk oil will be on hand to start the first quarter of Year 2.

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