Sill Corporation Makes One Product

question 23

Multiple Choice

Sill Corporation makes one product. Budgeted unit sales for January, February, March, and April are 9,900, 11,400, 11,900, and 13,400 units, respectively. The ending finished goods inventory equals 20% of the following month's sales. The ending raw materials inventory equals 40% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. If 61,000 pounds of raw materials are required for production in March, then the budgeted raw material purchases for February is closest to:

• A) 58,900 pounds
• B) 104,900 pounds
• C) 57,500 pounds
• D) 81,900 pounds

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Definitions:

Correlation

A measure that indicates the extent to which two or more variables fluctuate together, but not necessarily causation.

Field Study

A research method that involves collecting data outside of a laboratory setting, in the natural environment where the subjects of study can be observed in their usual circumstances.

Social Behavior

Actions and interactions among individuals within a group, ranging from cooperation and communication to competition and conflict, influenced by the social context.

Independent Variables

Variables in an experiment that are manipulated to observe their effect on dependent variables, used to establish causal relationships.