Pillows Unlimited makes decorative throw pillows for home use.The company sells the pillows to home décor retailers for $14 perpillow. Each pillow requires 1.25 yards of fabric, which thecompany obtains at a cost of $6 per yard. The company would like tomaintain an ending stock of fabric equal to 10% of the next month’sproduction requirements. The company would also like to maintainand ending stock of finished pillows equal to 20% of the next monthsales.
Sales (in units) are projected to be as follows for the first 3months of the year:
|
January |
200,000 |
|
February |
220,000 |
|
March |
230,000 |
Requirements:
1.Prepare the following
OR
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