The sun company manufactures a special line of graphic tubing items. The company estimates will sell 75,000 units of this item in 2008. The beginning finished goods inventory contains 20,000 units. The target for each year's inventory is 10,000 units.
Each unit requires five feet of plastic tubing. The tubinginventory currently includes 70,000 feet of the required tubing. Materials on hand are targeted to equal three month's production. Any shortage in materials will be made up by the immediate purchase of materials. Sales take place evenly throughout the year. What is the production budget in units for 2008? What are the materials requirements in feet for 2008?