Pounds of material

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Z makes units that each requires 2 pounds of material at $3 per pound. 500 and 700 units will be built in May and June, respectively. Z keeps material on hand at 20% of the next month's production needs. How much is the material cost for May's output?

A.   $2,400
B.   $3,000
C.   $3,240
D.   $4,200
E.   None of these

 

 

Reference no: EM13912863

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