Question

Breadmaster produces organic bread that is sold by the loaf. Each loaf requires 1/2 of a pound of flour. The bakery pays $2.00 per pound of the organic flour used in its loaves. The bakery expects to produce the following number of loaves in each of the upcoming four months: July: 1,540 loaves August: 1,820 loaves September: 1,660 loaves October: 1,460 loaves The bakery has a policy that it will have 20% of the following month's flour needs on hand at the end of each month. At the end of June, there were 154 pounds of flour on hand. How much flour should Breadmaster purchase in August

Answer 1

Answer:

$1788

Explanation:

the picture attached shows the full solution to the problem

Answer 2

Answer:

Flour purchase requirement:

July 898 pounds of Flour ($1,796)

August 1,076 pounds of Flour ($2,152)

September 976 pounds of flour ($1,952)

Q3 purchase requirement = 2,950 pounds (valued at $5,900)

Explanation:

July

Flour requirement = 1/2 x [(100% x 1,540) + (20% x 1,820)] = 1/2 x (1540 + 364) = 952 pound of Flour

But Opening stock is 154

Flour to be purchased in July = 898 pounds of flour (at $2 per pound) = $1,796

August

Flour requirement = 1/2 x [(100% x 1,820) + (20% x 1,660)] = 1/2 x (1820 + 332) = 1,076 pounds of Flour

Flour to be purchased in August = 1076 pounds of flour (at $2 per pound) = $2,152

September

Flour requirement = 1/2 x [(100% x 1,660) + (20% x 1,460)] = 1/2 x (1660 + 292) = 976 pounds of Flour

Flour to be purchased in August = 976 pounds of flour (at $2 per pound) = $1,952