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AB Ltd.

AB Ltd. is currently preparing its material usage budget for product 'Pep' for the forthcoming year. There will be 10,000 units of product 'Pep' produced during the forthcoming year. Each unit of 'Pep' requires 5 kgs of material 'X'.

Opening inventory of material 'X' is estimated to be 15,000 kgs and the company wishes to increase this level of inventory to 17,500 kgs by the end of next year.

The material usage budget for the forthcoming year is

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