Greener Grass Fertilizer Company plans to sell 270,000 units of finished product in July and anticipates a growth rate in sales of 4 percent per month. The desired monthly ending inventory in units of finished product is 75 percent of the next month’s estimated sales. There are 202,500 finished units in inventory on June 30. Each unit of finished product requires 3 pounds of raw material at a cost of $1.35 per pound. There are 810,000 pounds of raw material in inventory on June 30.
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