Use the Information Below to Answer the Following Questions

question 45

Multiple Choice

Use the information below to answer the following questions.
Jackson Bottle Yard, a recycling glass company, has supplied the following information in relation to their actual sales in 2015 and planned sales for the first quarter of 2016. Past records indicate that expected receipts collected from debtors will be: 60 per cent in the month of sale
40 per cent in the month following the sale
-If units sales of the iPad are currently 5,000 units, and those of the Macbook Air are currently double those of the iPad, what will the company's total sales forecast be if sales of the iPad increase by 10 per cent and those of the Macbook Air go up by 2,000 units?

• A) 16,000 units
• B) 16,500 units
• C) 17,500 units
• D) 17,000 units

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Definitions:

Labor Intensive

A process or industry that requires a large amount of human labor compared to capital investment.

Fixed Asset Turnover Ratio

A financial ratio that measures a company's efficiency in using its fixed assets to generate sales, calculated by dividing net sales by the net value of fixed assets.

Book Value

The net value of a company's assets found on its balance sheet, calculated as total assets minus intangible assets and liabilities.

Accumulated Depreciation

The total depreciation charged over an asset's life, reducing its book value.