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Wolfpack Inc. manufactures a collegiate product sold in the university bookstore which requires glue as one of the key ingredients. The company has already done their production budget and has determined that the following units of this collegiate product need to be produced in the first quarter of 2014:
January: 3,000 units
February: 1,800 units
March: 2,500 units
Each of the above units requires 1 ounce of glue at a cost of $1.50 per ounce. The company has determined that it needs 10% of next month's raw material needs on hand at the end of each month.
Question: What will be the cost of the glue that is expected to be purchased in February?
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