Use the Information Below to Answer the Following Questions

question 46

Multiple Choice

Use the information below to answer the following questions.
Gillies Company budgets on an annual basis. The following beginning and ending inventory levels are planned for the coming year, 2015. There are two units of material per unit of output.
-Refer to the table above. If 500,000 finished units were to be sold by Gillies Company during the year, what is the amount of direct material that needs to be purchased?

• A) 940,000 kgs
• B) 970,000 kgs
• C) 1,000,000 kgs
• D) 1,010,000 kgs

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Definitions:

Probability

A numerical expression ranging between 0 and 1 that indicates the chance of an event taking place, where 0 means the event cannot happen and 1 means it will definitely happen.

Reservation Price

The maximum price a consumer is willing to pay for a product or service.

English Auction

A method of sale involving ascending bids, where participants bid openly against one another, and the item is sold to the highest bidder.

Willingness To Pay

The maximum amount an individual is prepared to spend on a good or service.