Question
In: Accounting
Flubber Inc. makes a bouncy clay alternative. Their “Boing-Boing” brand clay requires two gallons of whole...
Flubber Inc. makes a bouncy clay alternative. Their “Boing-Boing” brand clay requires two gallons of whole milk for each package. Selected data from the Flubber’s master budget for the next quarter are shown below:
| April | May | June | |
| Budgeted sales (units) | 32,000 | 37,000 | 30,000 |
|
Budgeted production (units) |
28,000 | 30,000 | 36,000 |
|
Desired ending inventory of milk (gallons) |
3,000 | 3,600 | 2,700 |
How many gallons of milk should Flubber Inc. purchase in May?
Solutions
Expert Solution
Answer: 60,600 gallons
.
.
| Budgeted production for May (a) | 30,000 | packages |
| Number of gallons required for each package (b) | 2 | gallons |
| Total number of gallons needed for production (a x b) | 60,000 | gallons |
| Plus: Desired ending inventory for May | 3,600 | gallons |
| Total number of gallons needed | 63,600 | gallons |
| Less: Beginning inventory [Is equal to desired ending inventory for April] | 3,000 | gallons |
| Number of gallons needed to be purchased | 60,600 | gallons |
ekkarill92 answered 3 years agoRelated Solutions
At a certain refinery, the refining process requires the production of at least two gallons of...
At a certain refinery, the refining process requires the
production of at least two gallons of gasoline for each gallon of
fuel oil. To meet the anticipated demands of winter, at least three
million gallons of fuel oil a day will need to be produced. The
demand for gasoline, on the other hand, is not more than 6.4
million gallons a day. If gasoline is selling for $1.90 per gallon
and fuel oil sells for $1.50/gal, how much of each...
ABC is considering two investment alternatives. Alternative A requires an initial investment of $10,000; it will...
ABC is considering two investment alternatives. Alternative A
requires an initial investment
of $10,000; it will yield incomes of $3000, $3500, $4000, and $4500
over its 4-year life.
Alternative B requires an initial investment of $12,000; it is
anticipated that the revenue
received each year will increase at a rate of 10%/year (each year’s
revenue is 10% higher than
that of the preceding year).
Based on an interest rate of 12% compounded annually, what must be
the revenue at the...
ABC is considering two investment alternatives. Alternative A requires an initial investment of $10,000; it will...
ABC is considering two investment alternatives. Alternative A
requires an initial investment
of $10,000; it will yield incomes of $3000, $3500, $4000, and $4500
over its 4-year life.
Alternative B requires an initial investment of $12,000; it is
anticipated that the revenue
received each year will increase at a rate of 10%/year (each year’s
revenue is 10% higher than
that of the preceding year).
Based on an interest rate of 14% compounded annually, what must be
the revenue at the...
Following is information on two alternative investments being considered by Jolee Company. The company requires a...
Following is information on two alternative investments being
considered by Jolee Company. The company requires a 10% return from
its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1)
(Use appropriate factor(s) from the tables provided.) Project A
Project B Initial investment $ (189,325 ) $ (144,960 ) Expected net
cash flows in year: 1 54,000 38,000 2 45,000 59,000 3 90,295 52,000
4 91,400 75,000 5 56,000 32,000 a. For each alternative project
compute...
Following is information on two alternative investments being considered by Jolee Company. The company requires a...
Following is information on two alternative investments being
considered by Jolee Company. The company requires a 6% return from
its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1)
(Use appropriate factor(s) from the tables
provided.)
Project A
Project B
Initial investment
$
(171,325
)
$
(149,960
)
Expected net cash flows in:
Year 1
48,000
33,000
Year 2
55,000
56,000
Year 3
78,295
54,000
Year 4
91,400
82,000
Year 5
54,000
31,000
a. For...
Following is information on two alternative investments being considered by Jolee Company. The company requires a...
Following is information on two alternative investments being
considered by Jolee Company. The company requires a 8% return from
its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1)
(Use appropriate factor(s) from the tables
provided.)
Project A
Project B
Initial investment
$
(176,325
)
$
(157,960
)
Expected net cash flows in year:
1
36,000
28,000
2
57,000
44,000
3
91,295
55,000
4
81,400
68,000
5
68,000
30,000
a. For each alternative project compute...
Following is information on two alternative investments being considered by Tiger Co. The company requires a...
Following is information on two alternative investments being
considered by Tiger Co. The company requires a 7% return from its
investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1)
(Use appropriate factor(s) from the tables
provided.)
Project X1
Project X2
Initial investment
$
(86,000
)
$
(132,000
)
Expected net cash flows in year:
1
28,000
64,500
2
38,500
54,500
3
63,500
44,500
a. Compute each project’s net present value.
b. Compute each project’s profitability...
Following is information on two alternative investments being considered by Tiger Co. The company requires a...
Following is information on two alternative investments being
considered by Tiger Co. The company requires a 4% return from its
investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1)
(Use appropriate factor(s) from the tables
provided.)
Project X1
Project X2
Initial investment
$
(130,000
)
$
(220,000
)
Expected net cash flows in year:
1
50,000
97,500
2
60,500
87,500
3
85,500
77,500
a. Compute each project’s net present value.
b. Compute each project’s profitability...
Following is information on two alternative investments being considered by Jolee Company. The company requires a...
Following is information on two alternative investments being
considered by Jolee Company. The company requires a 6% return from
its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1)
(Use appropriate factor(s) from the tables provided.) Project A
Project B Initial investment $ (174,325 ) $ (145,960 ) Expected net
cash flows in: Year 1 40,000 41,000 Year 2 42,000 57,000 Year 3
74,295 58,000 Year 4 88,400 70,000 Year 5 58,000 36,000 a. For...
Following is information on two alternative investments being considered by Jolee Company. The company requires a...
Following is information on two alternative investments being
considered by Jolee Company. The company requires a 8% return from
its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1)
(Use appropriate factor(s) from the tables provided.)
Project A
Project B
Initial investment
$
(184,325
)
$
(154,960
)
Expected net cash flows in
year:
1
50,000
29,000
2
60,000
55,000
3
75,295
48,000
4
78,400
83,000
5
71,000
22,000
a. For each alternative project...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Why does a particular codon represent only one specific amino acid?
- Write a function template sort that takes two references to generic objects and switches them if...
- What 2 things happen to the melting point of a solid when an impurity is present?
- How Can Hominin Evolution be characterized as " mosaic evolution" Use examples of species from the...
- Absorption and Variable Costing Income Statements for Two Months and Analysis During the first month of...
- Mobile and wireless devices are being increasingly used in the Business Administration and Management Industry. write...
- What are the options that might be considered in relation to introducing flexible work practices? What...
ADVERTISEMENT