An automobile manufacturing firm decides to meet all its suppliers while planning to manufacture a new automobile that is a minor variant of an existing model in terms of design and performance. The firm wants to provide its loyal customers with automobiles at a low price without compromising on performance. According to authors Crawford and DiBenedetto, this new product falls into the category of ________.

Answers

Answer 1

Question Completion With Options:

O price redemptions

O repositionings

O price exemptions

O cost reductions

Answer:

According to authors Crawford and DiBenedetto, this new product falls into the category of ________.

O cost reductions

Explanation:

According to the declared intention of the automobile manufacturing firm, it is working at providing its loyal customers with low-priced automobiles that still maintain competitive performance.  Therefore, the new product falls into the category of cost reductions, which is a strategic move to ensure that costs do not drive away customers while the company rakes in huge revenue with increased sales volume.


Related Questions

If someone is engaged in a highly dangerous activity (sky diving or scuba diving), then normally assumption of risk waivers must be signed. Are those waivers always effective, or can you imagine a situation where liability could still be imposed

Answers

Answer:

The signing of assumption of risk waivers cannot serve as a substitute to the insurance of liability hence lawsuit can be filed

Explanation:

liability could be imposed by the person engaged in the dangerous activity if the handler of the activity exhibits some form of negligence or discriminatory behaviors or if the material used is substandard.

The signing of assumption of risk waivers cannot serve as a substitute to the insurance of liability hence lawsuit can be filed

The financial statements of Apple Inc. in Appendix A contain the following selected accounts, all in thousands of dollars.

Common Stock $35,867
Accounts Payable 49,049
Accounts Receivable 17,874
Selling, General, and Administrative Expenses 15,261
Inventories 4,855
Net Property, Plant, and Equipment 33,783
Net Sales 229,234

Required:
a. What is the increase and decrease side for each account?
b. What is the normal balance for each account?

Answers

Answer:

Apple Inc.

a. The increase and decrease side for each account

                                                                             ($'000) Increase  Decrease

                                                                                              Side          Side

Common Stock                                                 $35,867    Credit      Debit

Accounts Payable                                               49,049    Credit      Debit

Accounts Receivable                                           17,874     Debit       Credit

Selling, General, and Administrative Expenses 15,261     Debit       Credit

Inventories                                                            4,855     Debit       Credit

Net Property, Plant, and Equipment                  33,783     Debit       Credit

Net Sales                                                          229,234     Credit      Debit

b. The normal balance for each account

                                                                             ($'000) Normal Balance

                                                                                             

Common Stock                                                 $35,867    Credit Balance

Accounts Payable                                               49,049    Credit Balance

Accounts Receivable                                           17,874     Debit Balance

Selling, General, and Administrative Expenses 15,261     Debit Balance

Inventories                                                            4,855     Debit Balance

Net Property, Plant, and Equipment                  33,783     Debit Balance

Net Sales                                                          229,234     Credit Balance

Explanation:

Selected Accounts from Appendix A of Apple' Financial Statements:

                                                                             ($'000)

Common Stock                                                 $35,867

Accounts Payable                                               49,049    

Accounts Receivable                                           17,874

Selling, General, and Administrative Expenses 15,261

Inventories                                                            4,855

Net Property, Plant, and Equipment                  33,783

Net Sales                                                          229,234

b) Assets and Expenses increase by debit entries to their accounts, and they decrease by credit entries.  They normally have debit balances.  On the other hand, Liabilities, Equity, Revenue, and Income normally have credit balances.  They increase by credit entries to their accounts and decrease by debit entries.

Given the points (-4,8) and (6,-12)

Answers

Answer:

N/A

Explanation:

What is the question. There is nothing to answer.

where is the question please put the question so we can help

The journal entry to record the accrual of factory utilities is to: Multiple choice question. debit Factory Overhead and credit Utilities Payable debit Utilities Payable and credit Factory Overhead debit Factory Overhead and credit Cash debit Cash and credit Factory Overhead

Answers

Answer:

debit Factory Overhead and credit Utilities Payable

Explanation:

The journal entry to record the accrual of factory utilities is to: Debit Expense Account -  Factory Overhead and Credit Liability Account -Utilities Payable.

Consider the following stock price and shares outstanding data: Stock Name Price per Share Shares Outstanding (Billion) Lowes $28.80 1.53 Wal-Mart $47.90 4.17 Intel $19.60 5.77 Boeing $75.00 0.79 If you are interested in creatinga value-weighted portfolio of these four stocks, then the percentage amount that you would invest in Lowes is closest to: A) 25% B) 11% C) 20.0% D) 12% E) 8%

Answers

Answer:

B) 11%

Explanation:

We need to determine the total amount to invest in all the stocks in the first place as computed below:

Lowes= $28.80*1.53=$44.06

Wal-Mart=$47.90*4.17=$199.74

Intel=$19.60*5.77 =$113.09

Boeing=$75.00*0.79=$59.25

Total amount invested in the portfolio=$44.06+$199.74+$113.09+$59.25

Total amount invested in the portfolio=$416.14

Lowes' portion of the portfolio=amount invested in Lowes/total portfolio amount

Lowes' portion of the portfolio=$44.06/$416.14

Lowes' portion of the portfolio=11%

What is the initial selling price needed to obtain a target profit of $50,000 using the manufacturing cost markup method

Answers

Answer:

$15 per unit

Explanation:

Note "The full question is attached as picture below"

Markup = (Fixed Costs + Desired Profit) / Units produced

Markup = ($300,000 + $150,000 + $50,000) / 50,000

Markup = $500,000 / 50,000 units

Markup = $10 per unit

Variable cost per unit = Variable cost / Quantity

Variable cost per unit = ($200,000 + $50,000) / 50,000

Variable cost per unit = $5 per unit

Sales price = Variable cost + Markup

Sales price = $5 per unit + $10 per unit

Sales price = $15 per unit

So, the initial selling price needed to obtain a target profit of $50,000 using the manufacturing cost markup method is $15 per unit.

Suppose you have $100 of endowment, and you are offered a chance to buy a lottery which costs $36. The lottery has 43% of chance to win a prize of $G, or you just lose and get nothing. Suppose your utility function on wealth is u(w)=w^1/2. What is the least prize size G that you will be willing to buy the lottery? (Round to the second digit after decimal point.)

Answers

Answer:

96.02

Explanation:

Lottery's Expected utility = [tex]\sqrt{100}[/tex] = 10

Income in good state = 100 - 36 + G = 64 + G

Income in bad state = 100 - 36 = 64

Probability in good state = 43%

Probability in bad state = 100% - 43% = 57%

Expected utility = Probability in good state x [tex]\sqrt{(64 + G )}[/tex] + Probability in bad state x [tex]\sqrt{64\\}[/tex]

10 = 43% x [tex]\sqrt{(64 + G )}[/tex] + 57% x 8

10 = 43% x [tex]\sqrt{(64 + G )}[/tex] + 4.56

10 - 4.56 = 43% x [tex]\sqrt{(64 + G )}[/tex]

5.44 = = 43% x [tex]\sqrt{(64 + G )}[/tex]

5.44 / 43% = [tex]\sqrt{(64 + G )}[/tex]

12.65 = [tex]\sqrt{(64 + G )}[/tex]

[tex]12.65^{2}[/tex] = [tex](\sqrt{(64 + G )})^{2}[/tex]

160.0225 = 64 + G

G = 160.0225 - 64

G = 96.0225

G = 96.02

name the market structure in which agriculture farming operate​

Answers

Answer:

The right answer is "Pure monopoly, monopolistic competition and oligopoly".

Explanation:

The agricultural market system would be fundamentally competitive as well as is often called straight-up competitiveness.Agriculture would be ideal competitiveness even though it has a vast variety of industries and every company generates a small proportion of the overall production of such marketplace.

Thus the above is the correct answer.

Purdum Farms borrowed $17 million by signing a five-year note on December 31, 2017. Repayments of the principal are payable annually in installments of $3.4 million each. Purdum Farms makes the first payment on December 31, 2018 and then prepares its balance sheet. What amount will be reported as current and long-term liabilities, respectively, in connection with the note at December 31, 2018, after the first payment is made

Answers

Answer:

6998761626639499r9r9r8ryy

Williams Company pays each of its two office employees each Friday at the rate of $290 per day for a five-day week that begins on Monday. If the monthly accounting period ends on Tuesday and the employees worked on both Monday and Tuesday, the month-end adjusting entry to record the salaries earned but unpaid is:

Answers

Answer:

Debit Salaries Expense $1,160 and credit Salaries Payable $1,160

Explanation:

Preparation of the month-end adjusting entry to record the salaries earned but unpaid

Based on the above information given the month-end adjusting journal entry to record the salaries earned but unpaid is:

Debit Salaries Expense $1,160

Credit Salaries Payable $1,160

( 2days * 2 workers *$290 per day = $1,160)

(To record the salaries earned but unpaid)

The difference between a low-cost provider strategy and a focused low-cost strategy is Multiple choice question. the company's willingness to accept a lower profit margin. the uniqueness of the product or service. the size of the company's targeted buyer group. the length of the value chain.

Answers

Answer:

the size of the company's targeted buyer group.

Explanation:

Low cost strategies are used by sellers to gain more patronage of their products. It gives them competitive advantage of having low prices and this will in turn increase sales.

The low-cost provider strategy involves a reduction in prices of all the products a company sells in all locations while still making a profut. An appeal is made to a broad market to attract customers in mass.

The focused low-cost strategy on the other hand involves cost reduction in a targeted niche. It does not appeal to the broad market but rather to a specific customer profile.

So the difference between these two strategies is the size of the company's targeted buyer group.

If Medicaid is expanded to cover a greater percentage of the population: the public debt will immediately increase. implicit liabilities will increase. implicit liabilities will decrease. implicit liabilities will be unaffected.

Answers

Answer: implicit liabilities will increase.

Explanation:

Implicit liabilities are incurred by government as a result of them having to take care of their citizens. Medicaid is one such liability.

If the government were to expand the percentage of people in the country that are to be covered by medical aid, this would mean that more Medicaid will be paid by the government which means that the implicit liabilities will increase.

Cashan Corporation makes and sells a product called a Miniwarp. One Miniwarp requires 1.5 kilograms of the raw material Jurislon. Budgeted production of Miniwarps for the next five months is as follows: August 24,500 units September 24,700 units October 24,600 units November 26,400 units December 24,500 units
The company wants to maintain monthly ending inventories of Jurislon equal to 30% of the following month's production needs. On July 31, this requirement was not met since only 10,400 kilograms of Jurislon were on hand. The cost of Jurislon is $4.00 per kilogram. The company wants to prepare a Direct Materials Purchase Budget for the next five months.
The desired ending inventory of Jurislon for September is:_______.
a. $29,640
b. $29,520
c. $44,460
d. $44,280

Answers

Answer:

Option d ($44,280) is the correct option.

Explanation:

Given:

Maintain monthly inventory,

= 30%

October production,

= 24,600 units

Rate per kg,

= $4

For September month,

The desired ending units will be:

= [tex]Maintain \ monthly \ inventory\times Production \ in \ October[/tex]

= [tex]30 \ percent\times 24600[/tex]

= [tex]7380 \ units[/tex]

The required quantity will be:

= [tex]1.5 \ kg\times Desired \ ending \ units[/tex]

= [tex]1.5 \ kg\times 7380[/tex]

= [tex]11070 \ units[/tex]

hence,

The total price will be:

= [tex]Rate \ per \ kg\times Required \ quantity[/tex]

= [tex]4\times 11070[/tex]

= [tex]44280[/tex] ($)

Bottlebrush Company has income from operations of $73,745, invested assets of $245,000, and sales of $1,053,500. Use the DuPont formula to calculate the return on investment, and show (a) the profit margin, (b) the investment turnover, and (c) the return on investment. Round answers to one decimal place. a. Profit Margin fill in the blank 1 % b. Investment Turnover fill in the blank 2 c. Return on Investment

Answers

Answer:

a. Profit margin = Income from operations / Sales

Profit margin = $73,745/$1,053,500

Profit margin = 0.07

Profit margin = 7%

b. Investment turnover = Sales/Invested assets

Investment turnover = $1,053,500/$245,000

Investment turnover = 4.3 times

c. Rate of return on investment = Profit margin * Investment turnover

Rate of return on investment = 7% * 4.3

Rate of return on investment = 30.10%

Differentiate between a defined contribution pension plan and a defined benefit pension plan. Explain how the employer's obligation differs between the two types of plans.

Answers

Answer:

Differences Between a Defined Contribution Pension Plan and a Defined Benefit Pension Plan.

With a defined contribution pension plan, the benefit that will accrue to the employee is not known or defined ahead of her retirement.  But the contributions that will be made by the employer and the employee to fund the pension are clearly spelt out.

With a defined benefit pension plan, the benefit (i.e. the monthly payment to the retiree) is stated ahead of the pension time.  It is based on the employee's tenure and salary.  Employees do not contribute to the plan but are entitled to lifetime monthly payments.

Explanation:

The employer and each employee contribute some certain percentages to each worker's individual retirement account (IRA) under the defined contribution pension plan.  Under the defined benefit pension plan, the employer is solely responsible for funding the plan and the employee benefits via a monthly payment from the funding plan during retirement.

The master budget includes individual budgets for sales, production or merchandise purchases, various expenses, capital expenditures, and cash.
A. True
B. False

Answers

Answer: True

Explanation:

The statement that the master budget includes the individual budgets for the sales, production or merchandise purchases, various expenses, capital expenditures, and cash is true.

It should be noted that the master budget consists of the budgets of the lower-level that can be found in an organization, the cash flow forecasts, and a financial plan.

The master budget gives firm a wider view of its finances and is used in making organizational decisions.

Hi guys, I need your help to give your opinions about this one.
Example:
The experts on your island warn of a possible tsunami, but opinions are divided.
a. A quarter of the experts (group A) assume that a tsunami will certainly come.
b. Three quarters of the experts (group B) assume that the tsunami will come with a 10 percent probability.
Which professionals (group A or group B) would you like to believe more and why? Give reasons for your answer. And what are the consequences of this decision for your actions? And how do you deal with the risks of a wrong decision?

Answers

I would believe group A more

because, as we know "Precaution is always better an cure"

If I stay more cautious about it, there are less chances of the tsunami to cause a severe harm. If I don't stay much cautious, according to group B, and in case if their prediction goes wrong, I'll be in serious danger.

I chose group A because

even if the tsunami ain't powerful enough, I would be glad I was careful enough for it and it'll help me in future if I face another situation like this again

The consequences if I chose group B would be :

well, if I would have chose B, I won't have taken any Precautions at all

I won't have been careful enough

and in case their prediction went wrong, I would have to suffer high losses.

I hope it helps.... Have a great time ahead!

It has been argued that the traditional model of a full-service, lead advertising agency is becoming obsolete. Discuss the changes occurring in the industry and how they are affecting the traditional lead agency model.

Answers

Answer:

It can be argued that the traditional leading full-service advertising agency model is becoming obsolete by the emergence of new technologies and communication tools such as social media. The relationship between company and consumer is no longer something more mechanized and distant to become more direct and personal, this was made possible by the very characteristics of social media, which are fast and integrative communication tools, which humanized and brought companies closer to consumers, making relationship marketing a great advantage in the quest for value creation and market positioning.

Therefore, after companies have immersed themselves in social media, communication is faster and more instantaneous, in addition to being cheaper, it does not require so much elaborate advertising effort, but content that engages its potential audience, generates value and focuses on building relationships . So advertising is really just a construction of the real connections that consumers want to have with the company, its values, objectives and mission.

An investment banker agrees to underwrite an issue of 10 million shares of stock for TWResearch, Inc. on a firm commitment basis. The investment banker pays $10.50 per share to TWResearch, Inc. for the 10 million shares of stock. It then sells those shares to the public for $11.20 per share.
If the investment bank can sell the shares for $9.75 per share, what is the profit (loss) to the investment banker?
a) Profit of $1,000,000.
b) Loss of $7,500,000.
c) Profit of $7,000,000.
d) Loss of $7,000,000.\
e) Loss of $1,000,000.

Answers

Answer: b) Loss of $7,500,000.

Explanation:

The total the investment bank paid when underwriting was:

= 10.50 * 10,000,000 shares

= $105,000,000

The total they then sell to the public is:

= 9.75 * 10,000,000

= $97,500,000

The profit is:

= Selling revenue from public - Buying cost from company

= 97,500,000 - 105,000,000

= -$7,500,000

a T-bill money market fund that yields a sure rate of 4.6%. The probability distributions of the risky funds are: Expected Return Standard Deviation Stock fund (S)166%Bond fund (B)70%The correlation between the fund returns is 0.0800. What is the Sharpe ratio of the best feasible CAL

Answers

Answer:

The Sharpe ratio of the best feasible CAL is 0.3167.

Explanation:

Note: This question is not complete as some data are omitted. The complete qustion is therefore provided before answering the question. See attached pdf file for the complete question.

Risk-free rate = Sure rate of the T-bill money market fund = 4.6%, or 0.046

Sharpe ratio of a fund = (Expected return - Risk-free rate) / Standard Deviation …………. (1)

Using equation (1), we have:

Sharpe ratio of Stock fund = (16% - 4.6%) / 36% = 0.3167

Sharpe ratio of Bond fund = (7% - 4.6%) / 30% = 0.08

Since Sharpe Ratio of Stock Fund (S) is higher than Sharpe Ratio of Bond Fund (B), this implies that the best option is to invest in Stock Fund (S).

Therefore, the Sharpe ratio of the best feasible CAL is 0.3167.

How do different careers in the human services relate to one another

Answers

They relate because they all help people and you have to have a licensed degree, and practice

Mass customization is ______. Group of answer choices the redesign of components found to be faulty in earlier versions of a product the mass production of individually customized products the reuse of components discarded from scrapped products the production of each product by hand for specific custom

Answers

Answer:

production of individually customized products

Explanation:

Mass customization can be described as when a company produces and delivers market goods and services that are suited to meet the needs of individual customers

It combines the benefit of low cost associated with mass production with the customization of goods.

An example of a product that is mass customized is the mobile phone. A mobile phone is mass produced but due to its software, users are able to modify or customize their phone to suit their needs

Types of Mass customization

Collaborative customization:  In this type of Mass customization, customers and the company work together to create a good or service that meets the unique needs of the consumer.  Adaptive customization: the good or service created can be further customized by the consumer to suit their needs.  Transparent customization: unique products are made for each consumer .  Cosmetic customization: different types of standardized products are made for various groups of customers.

Advantages of Mass customization

Customer satisfaction increasesGoods are produced at lower costs

Disadvantages of Mass customization

It would be difficult for the company to build up stock ahead of time due to the unique needs of the customersthere would be an increased wait time from the time the order is made till when it is delivered

On November 1, clients of Great Designs Company prepaid $4,250 for services to be provided in the future at a rate of $85 per hour. a. Journalize the receipt of cash. If an amount box does not require an entry, leave it blank. Nov. 1 fill in the blank 15e2fafaf020002_2 fill in the blank 15e2fafaf020002_3 fill in the blank 15e2fafaf020002_5 fill in the blank 15e2fafaf020002_6 b. As of November 30, Great Designs shows that 15 hours of services have been provided on this agreement. Journalize the necessary adjusting entry. If an amount box does not require an entry, leave it blank. Nov. 30 fill in the blank 55e33803103f004_2 fill in the blank 55e33803103f004_3 fill in the blank 55e33803103f004_5 fill in the blank 55e33803103f004_6 c. Determine the total unearned fees in hours and dollars at November 30. Unearned fees in dollars $fill in the blank b5fba80a1040fa8_1 Unearned fees in hours fill in the blank b5fba80a1040fa8_2 hours

Answers

Answer:

Total unearned fees in dollars at November 30 = $2975

Total unearned fees in hours at November 30 = 35 hours

Explanation:

Your project is split into two teams across two different continents. They understand the work to be completed, as well as communication processes. But they still often argue about how the work should be accomplished and who should make decisions. Given what you know, what is the most likely cause for these issues?​

Answers

Answer:

Your project is split into two teams across two different continents. They understand the work to be completed, as well as communication processes. But they still often argue about how the work should be accomplished and who should make decisions. Given what you know, what is the most likely cause for these issues?

cultural differences

Explanation:

eBookItem 7 The U.S. Department of Agriculture guarantees dairy producers that they will receive at least $1.00 per pound for butter they supply to the market. Below is the current monthly demand and supply schedules for wholesale butter (in millions of pounds per month). Market for Wholesale Butter Price (dollars per pound) Quantity of Butter Demanded (millions of pounds) Quantity of Butter Supplied (millions of pounds) $0.80 114 70 0.90 111 78 1.00 108 86 1.10 105 94 1.20 102 102 1.30 99 110 1.40 96 118 1.50 93 126 1.60 90 134 1.70 87 142 1.80 84 150 Instructions: Round your answer for price to 2 decimal places. Enter your answers for quantity as a whole number. a. What are the equilibrium price and quantity in the wholesale butter market

Answers

Answer:

The U.S. Department of Agriculture

a. The equilibrium price in the wholesale butter market is:

= $1.20.

b. The equilibrium quantity in the wholesale butter market is:

= 102 million pounds.

Explanation:

a) Data and Calculations:

Market for Wholesale Butter

Price (dollars     Quantity of Butter     Quantity of Butter

 per pound)         Demanded                  Supplied

                      (millions of pounds)    (millions of pounds)

$0.80                      114                                  70

 0.90                       111                                  78

  1.00                     108                                  86

   1.10                     105                                  94

 1.20                     102                                 102

 1.30                       99                                  110

 1.40                       96                                  118

 1.50                       93                                 126

 1.60                       90                                 134

 1.70                       87                                  142

 1.80                       84                                 150

b) The equilibrium price and quantity are the price and quantity at which the quantity of butter demanded in the wholesale butter market equals the quantity of butter supplied in the same market. At this price of $1.20 per pound, the total quantity demanded and supplied equaled 102 million pounds of butter.  At this price and quantity, both consumers and suppliers of butter in the wholesale market go home satisfied.

You company requires that all projects yield a return of 12%. You’re the head of a project team developing a new product. The initial investment needed is $500,000 and the expected cashflows from this project will be 70,000 for the next 10 years. Will your project be approved, (generates a return higher than 12%). What cashflow would be required to get your project approved?

Answers

Answer:

initial investment = $500,000

10 cash flows of $70,000

Present value of cash flows = 5.65022 * $70,000 = $395,515.40

NPV = -$500,000 + $395,515.40 = -$104,484.60

The project should be rejected.

In order to approve the project, the cash flows should = $500,000 / 5.65022 = $88,492.13. With these cash flows the NPV = $0.

When he became the president of Jem Incorporated, John Smith changed the date of the weekly payday from the end of the day on Monday to the end of the day on Friday. The company has a weekly payroll of $10 million, and the cost of short-term funds was 13%. If this change delayed check clearing by 1 week, what annual savings were realized

Answers

Answer: $1.3 million

Explanation:

Based on the information given in the question, if this change delayed check clearing by 1 week, then the annual savings that were realized will be:

= Weekly payroll × Cost of short term funds

= $10 million × 13%

= $10 million × 0.13

= $1.3 million

Annual savings realized is $1.3 million.

Do we have to show repair expense of abnormal loss in consignment account.If yes,how ?​

Answers

Answer:

yes

Explanation:

to see the income and costs of the business

Consuela is a business analyst for her company. She is working from home and on a video conference with several other team members. Her video conferencing client displays a message indicating that the quality of her connection is unstable. What is the most likely problem

Answers

Answer: c) Latency between her VPN client removing encryption and making it available to the video-conferencing client is causing poor performance.

Explanation:

A Virtual Private Network (VPN) is used to protect the identity of people online as it encrypts a person's data and uses different servers to allow them browse the web and with a different IP address from the user's original IP address that way it appears as though the user is somewhere else in the world than they actually are.

In doing this however, VPNs might give slow speeds due to the latency that develops as the VPN encrypts and decrypts data for use. In this case, the VPN latency in decrypting the video call for Consuela to see it is slowing down the speed of the Video conferencing client.

Alliance Company budgets production of 24,000 units in January and 28,000 units in the February. Each finished unit requires 3 pounds of raw material K that costs $3.00 per pound. Each month's ending raw materials inventory should equal 35% of the following month's budgeted materials. The January 1 inventory for this material is 25,200 pounds. What is the budgeted materials needed in pounds for January

Answers

Answer:

Total direct material needed in pounds= 101,400 pounds

Explanation:

Giving the following information:

Each finished unit requires 3 pounds of raw material K that costs $3.00 per pound.

Each month's ending raw materials inventory should equal 35% of the following month's budgeted materials.

The January 1 inventory for this material is 25,200 pounds.

Production:

January= 24,000 units

February= 28,000 units

Direct material budget:

Production= 24,000*3= 72,000 pounds

Desired ending inventory= (28,000*0.35)*3= 29,400 pounds

Total direct material needed in pounds= 101,400 pounds

Purchases= production + desired ending inventory - beginning inventory

Purchases= 101,400 - 25,200

Purchases= 76,200 pounds

Direct material purchase cost= 76,200*3= $228,60

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