A British firm has a payable denominated in South African rand (ZAR) that is due in 6 months. It would like to hedge its transaction exposure, but it is unable to obtain a forward contract on the ZAR. If the exchanges rate of the ZAR and the Japanese yen (JPY) are inversely correlated, then the British firm could enter a forward on the JPY to partially hedge its ZAR payable. In this case, if the ZAR appreciates over the next 6 month, the JPY forward is likely to deliver a .

Croy inc. has the following projected sales for the next five months: month sales in units april 3,850 may 3,875 june 4,260 july 4,135 august 3,590 croy’s finished goods inventory policy is to have 60 percent of the next month’s sales on hand at the end of each month. direct material costs $2.50 per pound, and each unit requires 2 pounds. raw materials inventory policy is to have 50 percent of the next month’s production needs on hand at the end of each month. raw materials on hand at march 31 totaled 3,741 pounds. 1. determine budgeted production for april, may, and june. 2. determine the budgeted cost of materials purchased for april, may, and june. (round your answers to 2 decimal places.)