Crafty Cathy Products Inc Each Unit Requires

Multiple Choice

Crafty Cathy Products Inc.manufactures a product sold in most craft stores which requires non-soluble glue as one of the key ingredients.The company has already estimated that it needs to produce the following number of units of product for the second quarter of 2009:
$\begin{array}{ll}\text { April } & 75000 \text { units } \\\text { May } & 90000 \text { units } \\\text { June } & 84000 \text { units }\end{array}$

Each unit requires .5 grams of glue at a cost of $.30 a gram.The company has determined that it needs 15 per cent of next month's raw material needs on hand at the end of each month.
The cost of the glue that should be purchased in May is:

A) $13 365
B) $13 500
C) $15 390
D) $13 635