Figure 9-10

question 48

Multiple Choice

Figure 9-10. Connor Company produces speaker systems for cars.Estimated sales (in units) in January are 40,000; in February 37,000; and in March 34,000.Each unit is priced at $60.Connor wants to have 35 percent of the following month's sales in ending inventory.That requirement was met on January 1.
Each speaker system requires 3 boxes and 15 yards of wire.Boxes cost $4 each and wire is $0.60 per yard.Connor wants to have 20 percent of the following month's production needs in ending raw materials inventory.On January 1,Connor had 24,000 boxes and 100,000 yards of wire in inventory.
Refer to Figure 9-10.What is Connor's expected sales revenue for February?

• A)$2,020,000
• B)$1,900,000
• C)$60
• D)$1,125,000
• E)$2,220,000

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Definitions:

Probability Model

A mathematical representation of random phenomena, describing all possible outcomes and the likelihood of each outcome occurring.

Expected Amount

The predicted quantity or volume, often based on statistical analysis or previous data trends.

Probability Model

A mathematical representation of a random phenomenon, described by its sample space, events within the sample space, and probabilities associated with each event.

Deck Of Cards

A set of 52 cards typically divided into four suits, used for playing various games.