The Marginal Manufacturing Company Manufactures a Product Called Saver

The Marginal Manufacturing Company manufactures a product called Saver. Each unit of Saver requires 10 kilos of a material called Lostit. The budget calls for production of 7500 units of Saver for the month of July. The ending inventory of Lostit is forecast at 3500 kilos for the month of July and 4000 kilos for the month of June. If the cost of Lostit is $2 per kilo, what is the cost of purchases in monetary terms during the month of July?

A) $15 000
B) $75 000
C) $149 000
D) $151 000

Correct Answer:

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