In which of the following situations would you prefer to be the borrower? (a) the interest rate is 4 percent and the expected inflation rate is 1 percent. (b) the interest rate is 25 percent and the expected inflation rate is 50 percent. (c) the interest rate is 9 percent and the expected inflation rate is 7 percent. (d) the interest rate is 13 percent and the expected inflation rate is 15 percent.

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.)