Question: Mate Boomerang Corporation manufactures & sells plastic boomerangs. Expected boomerang sales [in units] for the upcoming months are as follows:
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Expected
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Unit
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Sales
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July
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12,000
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August
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15,000
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September
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10,000
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October
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8,000
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November
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7,000
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December
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11,000
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Seven (7) ounces of plastic resin are needed to produce every boomerang. Mate likes to have enough plastic resin on hand at the end of the month to cover 25 percent of the next month's production requirements. Mate also likes to maintain a finished goods inventory equal to 10 percent of next month's estimated sales.
Required:
Determine how many ounces of plastic resin should Mate plan on buying during the month of October?