Westile company buys plain ceramic tiles and prints

Reference no: EM13594999

Westile Company buys plain ceramic tiles and prints different designs on them for souvenir and gift stores. It buys the tiles from a small company in Europe, so at all times it keeps on hand a stock equal to the tiles needed for three months' sales. The tiles cost $2 each and must be paid for in cash. The company has 56,000 tiles in stock. Sales estimates, based on contracts received, are as follows for the next six months:

January 24,800
February 35,600
March 26,400
April 28,400
May 19,200
June 14,400

Required:
Estimate purchases (in units) and cash required to make purchases in January, February, and March.

Reference no: EM13594999

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