Lewis Hats is planning to sell 650 straw hats in April.Each hat requires ½ kilogram of straw and ¼ hour of direct labour.Straw costs $0.20 per kilogram and employees of the company are paid $22 per hour.Lewis has 80 kilograms of straw and 40 hats in beginning inventory and wants to have 50 kilograms of straw and 60 hats in ending inventory.How many units should Lewis Hats produce in April?
A)650
B)670
C)610
D)710

Question

Quizplus · Accepted Answer

To determine the number of units Lewis Hats should produce in April, we need to consider the desired ending inventory and subtract the beginning inventory from the total needed (desired sales plus desired ending inventory). Lewis wants to end with 60 hats but starts with 40, meaning they need an additional 20 hats on top of the 650 they plan to sell. Therefore, they need to produce 650 + 20 = 670 hats.

Lewis Hats Is Planning to Sell 650 Straw Hats in April.Each